Risk-Based Performance Management (RBPM) is a strategic execution methodology, developed to enable organisations to sustain strategy execution by integrating business strategy, performance and risk management. Core to Risk Based Performance Management (RPBM) is the understanding of ‘risk appetite’ and how the organisation can operate “within appetite”. Building on existing and widely deployed methodologies, namely the Balanced Scorecard and COSO framework, Risk-Based Performance Management is a proven response to the performance and risk challenges presented in today’s business environment.
The Risk-Based Performance Methodology was developed to enable clients to meet the challenges of implementing Basel 2 and Sarbanes Oxley alongside performance management and other management information processes. In more recent months, the credit crunch has added another set of challenges when considering performance and risk management processes.