Risk-Based Performance Management (RBPM) is a strategic management methodology designed to enable firms to execute strategy while operating within risk appetite boundaries.
By integrating best practices approaches to strategy setting, risk appetite, enterprise performance management and enterprise risk management, RBPM enables the board and senior management to understand, manage and control the risks facing their firms while building the capability to identify and exploit emerging opportunities to gain and maintain a competitive advantage.
Risk-Based Performance Management reflects how we need to regulate and how we want our regulated firms to manage their businesses” Director of Supervision, De Nederlandsche Bank
The RBPM methodology is made up of seven disciplines;
1. Set Strategy
2. Manage Performance
3. Manage Risk
4. Alignment Risk-taking to Strategy