Welcome to development
Everyone has differing opinions. These days, patch management will let you know if something has been customized if it has the same name as the standard, so there is something more in favor of copying the component to your VRC using the same name and modifying it.
The patch will not overwrite yours, since it is in a different VRC. The danger is the patch will update the standard, but you are calling your custom version, so you will not see the patch.
Here's 1 methodology - as you mentioned, there are many. I think with Patch Management, though, this is what Baan wants you to do.
1. Copy the report to the same package, same name, your VRC.
2. Make your changes, test, put into production.
3. Apply a standard Baan Patch
4. This will generate a Customization Report (if you ask for it). This only works right if they are the same name as the standard.
5. Take that report, go update your customized components.
6. Only then is the Patch install complete.