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Governance, Risk, Audit & Privacy · Intermediate

Balanced Scorecard (BSC)

Performance management tool measuring strategy across financial, customer, internal process, and learning and growth perspectives.

Definition

Developed by Kaplan and Norton, the balanced scorecard translates strategy into objectives and measures across four perspectives. An IT balanced scorecard adapts the perspectives (for example corporate contribution, user orientation, operational excellence, future orientation). It helps governance bodies monitor whether IT and security deliver value beyond financial metrics.

Example

An IT scorecard tracks project ROI, user satisfaction, incident resolution time, and staff certifications.

Exam tip

Recognize the BSC as a governance monitoring tool on CISA and CGEIT; it is not a risk assessment method.

Related terms