Enterprise Risk Management: A Guide for Government Professionals

Chapter FiveRisk and Performance Management

The approaches to risk and performance in the private and the government sectors have more similarities than differences. Both sectors aim to achieve maximum performance while safeguarding assets and exploiting opportunity. Managers and executives of organizations in these sectors seek to return value to internal and external stakeholders, engaging in transparency through reporting mechanisms (such as annual reports or annual performance plans), and to ensure that organizational missions are linked to strategy, objectives, and performance goals, and that metrics are established to track progress (see Exhibit 5.4 later in this chapter).

Private organizations drive results through a return-driven strategy ...