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.