Risk-Based Performance Management (RBPM)

Risk-Based Performance Management is a strategic execution and risk management methodology which was developed by Manigent, in conjunction with its clients in the financial services industry since 2007. Building on the Balanced Scorecard and COSO frameworks, Risk-Based Performance Management integrates and aligns strategy and risk management processes via risk appetite. It enable organisations to manage the trade-off between risk and reward, and drive strategic execution. 

Risk-Based Performance Management was originally designed to support financial service organisations to address the regulatory demands of BASEL 2 (AMA) and Sarbanes Oxley whilst meeting performance goals and delivering their strategy.

In the wake of the financial crisis and the increased attention being paid to risk, and specifically risk appetite, aligning strategy and risk using a structured approach such as Risk-Based Performance Management provides a real, sustainable competitive advantage. It also provides a framework to reduce the cost and burden of engaging with regulators, while improving the information which underpins this important relationship.

Key Points

• Strategic execution methodology
• Integrates and aligns strategy, performance and risk management processes
• Developed by Manigent, working with clients since 2007
• Builds on the Balanced Scorecard and COSO Enterprise Risk Management frameworks
• Embeds Risk Appetite and Risk Management at the heart of strategic and operational decision-making

Key Benefits

• Improve the delivery of their strategy and achieve performance targets
• Improve the allocation and utilisation of their capital
• Reduce cost through reductions in risk-related losses and simplification of reporting processes
• Lower the cost of capital

We were able to reduce our operational losses by over 50% in the first year of using Risk-Based Performance Management. CRO, Investment Bank