Federal Solutions

Developing a Risk-Based Allocation Capability

Digital Sandbox enables you to implement risk-based allocation using a two-by-two matrix approach to evaluate candidate proposals or investment portfolios. Matrices serve as a quantitative and qualitative framework for analyzing investments. They are particularly useful for gaining organizational consensus on investments and prioritizing investment decisions. A well-defined RBA process can mitigate a wide variety of mission and program risks to maximize the effectiveness of your available budget dollars, and can provide well-documented support for new budget justifications.

This widely-used analytical tool provides your organization with the following benefits:

• Enables you to visualize your allocation challenges and opportunities. A matrix can show you, for instance, which areas represent the greatest return on investment.
• Allows you to evaluate investments using four different management objectives (one in each quadrant).
• Provides your policymakers with a simple lens through which to view the decision space while still employing a sophisticated model to drive final allocations.
• Removes subjectivity from the allocation process,
• Creates transparency for all stakeholders,
• Involves stakeholders in the risk management process, and
• Contributes to accountability in government.