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RISK MANAGEMENT WITH THE PUBLIC SECTOR SCORECARDOne of the advantages of the Public Sector Scorecard over the Balanced Scorecard is that it integrates risk management much more easily.
Because the PSS is structured around outcomes, processes and capability, it can view the reduction of a major risk as a desired outcome; plans for reducing, eliminating and mitigating risk are processes; while addressing behavioural and organisational issues, together with developing a risk-management culture are capability elements. All these aspects can be included in the strategy map, alongside other relevant outcomes, processes and capability elements. |
INTEGRATING RISK MANAGEMENT
"Identifying and addressing key risks are essential for any high-performing organisation and therefore any evaluation of performance without considering risk is incomplete." Moullin (2006).
Note that I wrote this before the financial crisis of 2008, which was not helped by rewarding people on performance measures that ignored risk!.
Note that I wrote this before the financial crisis of 2008, which was not helped by rewarding people on performance measures that ignored risk!.
