Kaplan (2010) stated that "firms need a parallel scorecard to their strategy scorecard - a risk scorecard, this is one thing missing that has been revealed in the last few years and more work needs to be done on how risk can be integrated into the BSC and mentioned". Risks are categorized into financial and non-financial risks. In other words, the portfolio of risk balanced scorecard includes objective and subjective elements. Recognizing these risks and managing them appropriately enhances the ability of the firm to make better, more responsible decisions, deliver the bank's objectives and subsequently improve performance. As such, banks have invested a significant amount of capital and resources into risk management programs and approaches to mitigate risk. However, it is questionable whether such programs really provide a return or enhance operations. At the same time, research in the area and existing literature does not sufficiently explore the role of banking risk aligned to the balanced scorecard and existing banking performance measures. This book responds to Kaplan and the evident gap by proposing the Banking Risk Balanced Scorecard (BRBS) and providing evidence for the effectiveness of this approach in enhancing both the bank's competitive advantage and stakeholder value.
Mohamed Mahmoud is a full Professor and Head of the Business Administration Department at Modern University for Technology & Information, Egypt. With over 25 years of experience in banking, particularly in Credit Risk and Risk Management, he also serves as a due diligence team member for ALEX Bank and a consultant in Risk Management.Amal Soltan is Head of Market Risk, Internal Capital Adequacy Assessment Process, and Liquidity Risk at Société Arabe Internationale de Banque in Egypt, with more than 25 years in Treasury and Risk Management. She holds a PhD in Risk Management Systems and is an instructor with the Egyptian Banking Institute.David Edgar is a Professor of Strategy and Business Transformation at Glasgow Caledonian University, UK. He holds a PhD in Strategic Management and is a Senior Fellow of Advance HE. His research focuses on responsible management, business models, strategic management and innovation.
