Risk-Based Performance Management
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.
The sin is not to take a risk, but to take a risk that we don't understand and cannot manage.
What are we trying to achieve?
How much risk are we taking?
Appetite alignment matrix
Are we taking the right amount & type of risk to achieve our objectives?