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Unforeseen crises can result in significant losses for unprepared organizations. A paradigm for risk management discloses that threats can lead to crisis events which can have immense negative consequences. Analyzing risks and making appropriate decisions regarding them is very challenging but crucial. Emerging developments in organizational risk reveal similar characteristics among evolving threats. Effective risk management requires insightful leadership and is essential for an organization to achieve security. The paper aims to discuss these issues.

The authors explore some emerging developments in organizational risk, by highlighting evolving concerns and identifying their common characteristics. The authors then discuss key resources and recommend approaches in managing organizational risk.

Evolving concerns in organizational risk include: infrastructure risk, enterprise risk, information security risk, supply chain risk and new technologies risk. The most troubling threats to an organization tend to have some risk characteristics in common. These attributes are useful in identifying further threats.

Managing risk is an enormous challenge that all organizations encounter. Understanding the common characteristics of evolving risks that are currently under scrutiny can provide insight into identifying further threats to organizations. With these common characteristics understood, the primary resources of solid leadership, risk analytics and professional business continuity management can aid in the recognition of additional obscured but growing risks and be beneficial in providing security for an organization.

All technologies have intended and unintended consequences, both favorable and unfavorable. Because the risks from implementing a technology may outweigh its rewards, the precautionary principle, illustrated by the maxim “better safe than sorry”, often is applied. Yet, the precautionary principle itself may have unintended consequences. This paper aims to discuss the precautionary principle and unintended consequences and present a model for analyzing the resulting implications.

A deficiency in applying the precautionary principle often is forgoing a quantitative analysis. In this paper, the authors apply decision analysis and decision analytic methodologies. Specifically, they present a decision model which can be used when analyzing the consequences of using the precautionary principle. The methodology incorporates decision-makers’ attitude in the determination of the preferred decision policy. The authors illustrate the methodology by determining a decision policy regarding the application of the precautionary principle in a situation with potential unintended consequences.

The findings indicate that a generic decision model structure for assessing the use of the precautionary principle, as illustrated in a decision tree, can be used when implementing a new technology. The results of the analysis indicate that a decision-maker’s attitude plays an important role in determining a preferred decision policy for this dynamic decision situation.

This research breaks new ground by proposing a decision analytic methodology where quantitative analysis can be applied to address problems where technologies are implemented with unintended consequences and where the precautionary principle is applied.

Performance management systems (PMSs) are critical for organizational success, but research is undecided on their constructive influence and the means through which they impact work engagement and turnover intention. This study aims to fill this gap by surmising psychological contract fulfillment as a mediator in the relationship between PMS effectiveness (PMSE) and employee outcomes.

The study uses a survey research design. Data were collected from 327 working professionals in India. The Statistical Package for Social Science Version 10.0 (SPSS 10.0) and the Analysis of Moments Structure (AMOS) 4.0 were used for data analyses.

The two-factor construct perceived PMSE was found to explain a larger variance in work engagement and turnover intention than the separate measures for its constituents PMS accuracy (PMSA) and PMS fairness (PMSF). Psychological contract fulfillment and work engagement were found to mediate the relationship between PMSE and turnover intention.

The study broadens the field of research on PMS in important ways. It demonstrates that the two-factor construct PMSE has a larger influence on employee outcomes in comparison to its constituent individual measures PMSA and PMSF. This is also the first study to suggest that in contrast to PMSF, PMSA explains a higher variance in employee outcomes.

This study validates the strong relationship between PMSE and key employee outcomes. Besides PMSF, managers can use the findings of this study to focus on the “right things” or accuracy in the PMS context to enhance work engagement and reduce turnover.

The study findings will have value everywhere owing to the diffusion and convergence in the human resource management practices of multinational firms irrespective of their contexts (Ananthram and Nankervis, 2013).

Earlier PMS studies have mostly been limited to either its fairness or accuracy and attended unduly to its appraisal element. This study adopts a systems vision of PMS and overcomes earlier drawbacks by investigating the role of both PMSA and PMSF in shaping employee outcomes. This is the first study to empirically confirm that in contrast to PMSF, the PMSA constituent of PMSE explains a higher variance in employee outcomes. The study provides greatly essential pragmatic support to the conjecture that PMSs advance work engagement (Mone and London, 2014; Gruman and Saks, 2011) and lower turnover intention (Kwak and Choi, 2015).

Performance management systems (PMS) are integral to an organization's human resource management but research is ambivalent on their positive impact and the mechanism through which they influence employee behavior. This study fills this gap by positing work engagement as a mediator in the relationship between perceptions of PMS effectiveness, employee job satisfaction and turnover intentions.

The study uses a survey-based design. Data were collected from 322 employees in India attending a management development program at a premier business school. Partial least squares–based structure equation modeling package ADANCO was used for data analysis.

Positive perception of PMS effectiveness was found to enhance employee work engagement. This increased job satisfaction and reduced turnover intentions among employees. Thus, work engagement mediated the relationship between PMS perceptions and job satisfaction and turnover intentions.

The results suggest that organizations need to focus on three characteristics of PMS, namely its distinctiveness, consistency and consensus. These characteristics determine the effectiveness of PMS in engaging employees and influencing their job satisfaction and turnover intentions.

Prior studies on performance management have largely been limited to aspects of justice and focused disproportionately on the appraisal aspect of performance management. This study takes a systems view of performance management and addresses prior shortcomings by examining the role of clarity and horizontal fit between PMS practices in determining employee engagement. The study also provides much needed empirical support to theoretical studies which have argued that PMS is a driver of engagement in organizations (Gruman and Saks, 2011; Mone and London, 2014).