Building Risk Awareness into Performance: Integrating ERM and Performance Management

Enterprise risk management (ERM) and performance management are two complimentary processes essential for the management of an organization. The integration of risk assessment data into performance management has the potential to provide managers with an analytical framework for evaluating operational strategies, acquisitions and divestitures, and capital investments across different business units, asset types, and risk profiles. Despite the possible benefits, few companies have actively integrated their ERM and performance management processes. Building Risk Awareness into Performance: Integrating ERM and Performance Management explores the reasons behind this lack of integration through an examination of the results of a survey of 97 senior executives. It also offers several case studies of companies that have linked risk management and performance management.