Budgeting as a form of internal control has long been used by companies in their performance management approach. The more recent popularity of the use of dashboards and balanced scorecards has supplemented this. However, they may also have value in the budgeting process itself.

Dashboards and balanced scorecards combine financial and non$-$financial information, and the company$$s performance against relevant Key Performance Indicators $($KPIs$)$ can be seen. But what if companies were to incorporate these measures into their budgeting and forecasting activities, rather than just measuring past performance?

Critically evaluate the possible value of assimilating financial and non$-$financial information adjusted for risk together with financial and non$-$financial information in the budgeting process. Elaborate on what possible tools could be available in forecasting risk.