State and Local Solutions

What Is Risk-Based Allocation?

Risk-based allocation (RBA) maximizes the return on your program investments by using algorithms to prioritize risk factors for each program element or objective. Because RBA is informed by risk, higher-risk areas generally receive the greatest investments over time.

In addition to risk, factors considered in the RBA process include:

• Need (i.e., the capability levels required to mitigate risks)
• Current organizational capability levels
• Historical funding
• Cost to acquire needed capabilities
• Expected effectiveness of the initiative
• Alignment with higher level strategies
• Client-specific objectives and constraints.