Federal Solutions

What Is Risk-Based Allocation?

risk based analysisRisk-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 (including mission objectives and 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
  • Other mission-specific objectives and constraints determined by you.