Board Oversight

The supervisory role played by an organization's board of directors in monitoring management's execution of strategy within defined risk appetite boundaries. Effective board oversight involves setting risk appetite, approving risk policies, ensuring appropriate risk management frameworks, challenging management on strategic decisions, and monitoring risk exposure against defined limits. The board should regularly review risk reports, assess the effectiveness of risk management processes, and ensure alignment between risk-taking and strategic objectives. In RBPM, board oversight is a critical governance function.

Blue Ocean Strategy

A strategic approach developed by W. Chan Kim and Renée Mauborgne that challenges organizations to create uncontested market space (blue oceans) rather than competing in existing crowded markets (red oceans). Blue Ocean Strategy involves developing new value innovations that make competition irrelevant by creating and capturing new demand. This approach aligns with the RBPM framework by encouraging organizations to consider both the performance potential and risk implications of pursuing new market opportunities, ensuring that innovation is pursued within appropriate risk appetite parameters.

Balanced Scorecard

A strategic management framework developed by Robert Kaplan and David Norton that translates an organization's vision and strategy into a comprehensive set of performance measures. It provides a balanced view of organizational performance across four perspectives: financial, customer, internal processes, and learning and growth. The Balanced Scorecard enables organizations to track financial results while simultaneously monitoring progress in building capabilities and acquiring intangible assets needed for future growth. It serves as a foundation for the performance management aspects of RBPM.