Risk and performance management: are they easy partners?

Abstract

Purpose

This paper aims to provide a critical assessment of existing links between risk management systems (RMS) and performance management systems (PMS) through a general review of the literature.

Design/methodology/approach

The research approach consists of a literature review, aimed at highlighting the “points of contact” between RMS and PMS along three main dimensions: scope of the system, measurement and ownership.

Findings

Key papers and books published in the field are examined. Based on this review, an assessment of similarities and potential synergies between RMS and PMS is offered. In addition, possible avenues for future research are discussed.

Practical implications

The paper provides managers with useful insights on pros and cons of integrating RMS and PMS. It highlights possible instruments and organizational arrangements that could be exploited by practitioners to connect the two systems and discusses the implications of different possible configurations.

Originality/value

Whilst the professional literature is loaded with illustrations of RMS and PMS as “integrated” solutions, this issue has been only partially addressed by the academic literature that generally focuses on one of the two systems. Hence, the study overall contributes to enrich the knowledge of the relationship between performance and risk management by mapping how and where the two systems are linked.

Citation

Arena, M. and Arnaboldi, M. (2014), "Risk and performance management: are they easy partners?", Management Research Review, Vol. 37 No. 2, pp. 152-166. https://doi.org/10.1108/MRR-08-2012-0180