Manage Risk

The process of understanding the risks an organization faces in pursuing its objectives and continuously monitoring and managing those risks. This RBPM discipline involves identifying key risks, assessing their potential impact and likelihood, implementing appropriate controls, and tracking risk indicators. It encompasses both threat mitigation and opportunity exploitation, recognizing that risk management is not solely about minimizing negative outcomes but also about enabling appropriate risk-taking. The discipline is supported by the Risk Map, Risk Scorecard, Control Map, and Control Scorecard.

Manage Performance

The continuous process of monitoring objectives and their KPIs, identifying root causes of underperformance, and making adjustments. This RBPM discipline focuses on tracking progress toward strategic goals, understanding performance trends, and implementing improvement initiatives when necessary. It involves regular review of the Strategy Map and Performance Scorecard, analysis of performance exceptions, and decisions about resource allocation to close performance gaps. Effective performance management requires clear accountability for objectives and transparent reporting of results.

Malcolm Baldrige Framework

A performance excellence framework administered by the U.S. National Institute of Standards and Technology. It provides criteria for evaluating organizational performance across seven categories: leadership; strategy; customers; measurement, analysis, and knowledge management; workforce; operations; and results. The Baldrige Framework emphasizes integrated management systems and has influenced performance management approaches, including the Balanced Scorecard. In RBPM, Baldrige concepts inform the holistic view of organizational performance and the integration of strategy and risk management.