Risk-based performance

The Risk-based performance three pillars model is now available. This model follows a familiar structure - Principles, Framework and Process.

Principles

1. Begin with strategy, integrating performance and risk management
2. Set the tone to enable and sustain the right culture
3. Manage the relationship between performance, risk and controls
4. Combine hard numbers with expert knowledge & judgement
5. Align the change agenda (run, change & transform)
6. Embed accountabilities and responsibilities – execution is a team game
7. Continually monitor, review and improve

Framework

The framework is made up of 4 major parts:

1. Sustainable Strategic execution – this incorporates strategy mapping, risk appetite definition and risk mapping & assessment.
2. Performance Management – this incorporates performance objectives and KPIs
3. Risk Management – this incorporates key risks and KRIs
4. Compliance – this incorporates key controls and KCIs

The ‘supporting’ section of the framework includes:

1. Measures
2. Assessment
3. Risk Events
4. Projects
5. Scenarios

Process

The process includes:

1. Confirming strategy while defining objectives, risk appetite and key risks
2. Undertaking assessments
3. Aligning Risk Appetite and Exposure
4. Defining key controls
5. Defining indicators
6. Capturing risk events
7. Defining projects and countermeasures
8. Undertaking scenario analysis and ‘what-if’ modelling

Click here to download the Risk-based performance three pillars model (registration required)

Comments and questions most welcome.