Credit to ArturoDFW for pointing me in the right direction on this one with his post on Missing report Windows Compliance by Computer - Details in NS7.
I needed a way to get the "Windows Compliance by Update" report to only show data related to updates which have a severity rating of Critical or Important. If you want to include higher or lower patch severity ratings, you can easily adjust the stored procedure by modifying the following line in the attached SQL querry:
AND sr.SeverityLevel >=3
Simply modify the "3" to be the minimum patch severity rating you want to include, where:
0=Unclassified 1=Low 2=Moderate 3=Important 4=Critical
Follow the steps below to create the report yourself.
Note that if you right click on one of the devices and choose "View Applicable Updates" you'll still see all associated updates in that report, but you can easily sort by severity rating.