Risk Based Performance Management Workshop December 12th & 13th Workshop Overview: To effectively streamline management and regulatory reporting, organisations need to adopt an integrated framework, which covers strategy (performance management), Risk & Compliance. By attending this two-day interactive ‘bootcamp’ workshop, attendees will gain insights into the Risk-Based Performance Management methodology. This methodology, which builds on, Read More
Risk-Based Performance Management
The last few years has seen Risk Management information and processes play a greater role in the decision-making processes of many organisations at both a strategic and operational level. One aspect of Risk Management which has got regulatory attention is Loss Events, also known as Operational Losses or Risk Events. In simple terms, a Loss Read More
Delivering a project last week, I was involved in a conversation which neatly captured the power of the Risk-Based Performance Management approach, and its underlying philosophy that strategy and risk must be managed together, using an integrated framework. The conversation that took place involved two highly experienced, and very knowledgeable risk management professionals, a Manigent Read More
With the Risk-Based Performance Management methodology there are three ‘scorecards’ which we use to visualise strategy and risk management data and inform the management conversation and decision-making. The three scorecards are: Performance Scorecard Risk Scorecard Control Scorecard Each of the Scorecards have a similar structure but different content. The basic structure of the scorecards show Read More
In March 2000, The Royal Bank of Scotland (RBS) acquired the UK-bank NatWest in a £21 billion deal that was then the largest take-over in British banking history. The acquisition was considered at the time to be a masterstroke of strategy and execution. Thus began a ‘golden period’ in RBS’s near 300 year history. RBS Read More
Risk-Based Performance Management (RPBM) is a strategy execution and risk management methodology which is designed to enable organisations to drive sustainable strategic execution while ‘operating within appetite’. Core to RPBM is the understanding of ‘risk appetite’: that is the amount of risk that the organization is willing to, or is required to take in the Read More
The Risk-Based Performance Management methodology was again included in the IRM book, Managing Business Risk. The chapter is available for download here
Recently I have been working on a white paper with James Creelman titled Embedding Risk Appetite within the Strategy process. While it will be available soon on the Manigent website, for readers of this blog and members of our Linkedin group, I am making a draft available. Download the paper here As always, I encourage Read More
The presentation, Introduction to Risk-based performance – Research background and the methodology, delivered to the University of Siena on 31 October, 2009 is available. Please click here
Coming up in October and November there are a number of opportunities to learn more about Risk-based performance and ‘join the debate’ about integrating performance and risk management. October 20 – Unicom Strategic Performance Management and Balanced Scorecard Forum Risk-based performance will be the central theme of Andrew Smart’s presentation – Balanced Scorecard – Necessary Read More
Manigent introduces a new white paper, Aligning Risk Appetite and Exposure, The New Paradigm of Strategic Execution. In this paper, we are focusing on how organisations can successfully align their performance and risk management processes to enable them to survive the recession, and subsequently exploit opportunities presented as growth returns. We argue that successful strategy Read More
As the world economy starts to show the first signs of recovering from one of the worst economic crises in living memory businesses are taking an increasing interest in linking risk and performance management and taking a strategic approach to these two disciplines.
Outlined below are three key tools that our clients have found to be extremely powerful and beneficial as they have moved to an aligned risk and performance environment.
Recently, during a Risk-based performance implementation, we were asked by our client for advice on approaches to understanding the relative maturity of their current approach to risk management, which level of maturity is right for them and how to measure maturity post implementation.
Google ‘Risk Maturity Model’ and a number of very interesting approaches will be presented. Many of these models provide the answer to the question ‘How mature is our risk management process?’ in one form or another. However, in this case, answering this single question didn’t feel sufficient as our client was seeking to do more than simply ‘tick boxes’ with this project. They were seeking to drive a business transformation.
Further research uncovered Michael Hammer’s, Process and Enterprise Maturity Model (PEMM) which
At Unicom’s Strategic Performance Management and Balanced Scorecard Forum, Andrew Smart presented the Risk-based performance methodology alongside a number of other Balanced Scorecard experts. The introduction to the presentation In a thought-provoking presentation, Andrew Smart, Managing Director of Manigent, questions the role of the Balanced Scorecard in a post credit crunch world and asks what role Read More
The Risk-based performance methodology features in a chapter of the recently published book, Managing Business Risk. Managing Business Risk, a practical guide to protecting your business, is a practical guide to potential areas of risk within a business. This book contains invaluable advice for directors of both large and small companies, bringing readers up to speed Read More