Risk-based sustainability balanced scorecard to prioritizeintegrated improvement and to consider high level structure

Today, countries pay attention to the issue of sustainable development which begins to underlie activities from various fields. This issue forces companies to concern about sustainability issues by improving the process to become a green process. Consequently, the performance measurement system to measure the success of the green process needs to be developed. One of the examples is Sustainability Balanced Scorecard (SBSC) which is a developed form of Balanced Scorecard. SBSC is a tool for measuring performance by considering evaluation aspects of profit, planet and people. Currently, the assessment of the success of a company, however, is completed by observing the achievements of Key Performance Indicator (KPI) only, whereas the good performance of the company is also influenced by the risks of other businesses. Therefore, risks that affect the company need to be regulated and considered so that control to the company activities can be integratively conducted. Based on this research gap, this paper aims to initiate the integration of risk management with SBSC in measuring company performance. This integration effort can affect the priority of improvement for the company. As a case study, the results of the integration were tested to measure the performance of companies that produce construction materials. Based on this integration, the obtained results show that risk-based thinking in the Performance Measurement System can provide a new approach to assess the performance of a company.