Resolution Time

Overview

Resolution time measures how long it takes to close a compliance gap from the moment it is identified to the moment it is fully resolved. It is one of the most important operational metrics in certificate management because it directly reflects the efficiency of the compliance process and the responsiveness of the vendor base. Shorter resolution times mean less time with uninsured exposure; longer resolution times mean greater risk.

How It Works

Resolution time is calculated as the difference between two timestamps:

Resolution Time = Date of Resolution - Date of Deficiency Identification

The lifecycle of a compliance deficiency typically follows these steps:

1. Identification: The compliance team (or automated system) identifies a gap — an expired policy, insufficient limit, missing endorsement, or other deficiency
2. Notification: A deficiency notice is sent to the vendor, specifying what needs to be corrected
3. Vendor response: The vendor contacts their broker, requests the necessary changes, and obtains an updated certificate
4. Submission: The vendor submits the corrected COI
5. Review: The compliance team reviews the updated certificate
6. Resolution: If the certificate satisfies all requirements, the deficiency is closed

Resolution time is typically tracked in business days and analyzed at several levels:

• Average resolution time: Across all deficiencies in a period
• Median resolution time: The midpoint, less affected by outliers
• By deficiency type: Some issues (expired policies) resolve faster than others (missing endorsements)
• By vendor category: Some vendor types are more responsive than others
• By property or project: Compliance culture varies by location

Compliance Relevance

Resolution time is a critical operational metric for compliance programs:

• Risk exposure duration: Every day a deficiency remains open is a day of uninsured exposure. Resolution time quantifies this risk window.
• Process effectiveness: High resolution times may indicate problems with deficiency communication, vendor engagement, or the compliance review process
• Vendor accountability: Tracking resolution time by vendor identifies chronically slow responders who may need escalation or contract enforcement
• Resource planning: Understanding resolution time patterns helps compliance teams staff appropriately for peak deficiency periods (such as year-end renewals)
• Benchmarking: Industry benchmarks for resolution time vary, but best-in-class programs target 7 to 14 business days for standard deficiencies

Compliance platforms should track resolution time automatically, provide trend analysis, and flag deficiencies that exceed target resolution windows for escalation.