Strategy is a hypothesis of how the firm will create value. Risk is a hypothesis about the uncertainties of delivering the strategy. Risk Management provides the frameworks and tools to understand the uncertainties, challenge and stressing the strategic hypnosis while managing the uncertainties within the risk hypothesis.
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.