Four Perspective Risk Map

A visualization tool that shows key risks organized according to the four perspectives of the Strategy Map (financial, customer, internal processes, and learning and growth). This tool provides an at-a-glance view of risk exposures across the organization and highlights potential risk clusters or interrelationships. The Four Perspective Risk Map works alongside the Strategy Map and Appetite Alignment Matrix to provide a comprehensive view of strategic progress and risk position. It helps organizations identify where they may face multiple risks that could collectively threaten strategic objectives.

Financial Risk

Uncertainty related to financial aspects of business operations, including market risk, credit risk, liquidity risk, and capital adequacy. Financial risks involve potential losses due to market movements, counterparty defaults, funding constraints, or insufficient capital to support strategic initiatives. In RBPM, financial risks are typically well-quantified, with established measurement techniques and controls. Managing financial risks involves setting clear limits aligned with the organization's overall risk appetite and ensuring that exposure remains within these boundaries.