Wedding Bells: Risk Management and Performance Management

Inevitably all managerial methodologies, like customer relationship management and profit management and strategy management, will all be integrated. It may not happen for a few years, but software will make it inevitable. The most recent marriage of two of them, enterprise risk management and performance management, is another indication of this bonding. As evidence, Professor Robert S. Kaplan and Dr. David Norton, the authors of the balanced scorecard book series, have begun publishing materials on this marriage.

You can read my interpretation of this marriage in my article published by Canada’s professional institute for managerial accounting, CMA-Canada. It is titled The Future: Enterprise Risk-Based Performance Management.

In my article I begin by saying, “Enterprise performance management is now more correctly being defined as a much broader umbrella concept of integrated methodologies – much broader than its previously misconceived narrow definition as simply being dashboards and better financial reporting. What could possibly be an even broader definition? My belief is enterprise performance management is only part – but a crucial, integral part – of how an …

Inevitably all managerial methodologies, like customer relationship management and profit management and strategy management, will all be integrated. It may not happen for a few years, but software will make it inevitable. The most recent marriage of two of them, enterprise risk management and performance management, is another indication of this bonding. As evidence, Professor Robert S. Kaplan and Dr. David Norton, the authors of the balanced scorecard book series, have begun publishing materials on this marriage.

You can read my interpretation of this marriage in my article published by Canada’s professional institute for managerial accounting, CMA-Canada. It is titled The Future: Enterprise Risk-Based Performance Management.

In my article I begin by saying, “Enterprise performance management is now more correctly being defined as a much broader umbrella concept of integrated methodologies – much broader than its previously misconceived narrow definition as simply being dashboards and better financial reporting. What could possibly be an even broader definition? My belief is enterprise performance management is only part – but a crucial, integral part – of how an organization realizes its strategy to maximize its value to stakeholders, both in commercial and public sector organizations. This means that enterprise performance management must be encompassed by a broader overarching concept–enterprise risk management (ERM).”