Risk design

Red, yellow and green compliance scoring: a practical framework

Design a simple outcome without hiding the underlying reason.

Updated 14 August 2026 · Educational content, not legal advice

Short answer

A three-color model works when each color maps to a defined action: green means proceed under the standard process, yellow means collect information or escalate, and red means stop or obtain an approved exception.

Green: standard route

The known facts fit current policy. This is not a guarantee of final approval; formal review can still uncover new information.

Yellow: explicit review

State exactly what triggered review and who owns the next step. Avoid using yellow as a catch-all for missing logic.

Red: policy conflict

Explain the controlling reason and whether exceptions exist. Keep rule version and source data in the audit trail.

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