Enterprise Risk Management and Performance Management

Accounting

Speaker:Dr. Tommaso Palermo, LSE
Date: Wednesday 31 October 2012
Time: 14:00 - 15:30
Location: Building One: Constantine Leventis

Further details

The paper explores the links between multiple management control instruments, processes and roles, focusing on the relationship between Enterprise Risk Management (ERM) and performance management.  Concepts developed in governmentality studies are used to collect and analyse empirical material from two longitudinal case studies.  The case studies show how different relations emerge in a context where both ERM and performance management organisational arrangements relate to changing business conditions. One case shows a gradual transition towards a process where ERM and the planning and control cycle are sequentially related.  The second stresses the instability of the relationship between ERM and performance management, suggesting that specific configurations can be only temporary and episodic. Overall, integration between ERM and performance management can be viewed as a multifaceted construct related to different conceptions of problems and solutions. The paper discusses two ideal types of integration between ERM and performance management and their organisational implications.  In doing so, the study points to a finer grained understanding of the concept of mediating instruments, providing distinctive examples of practices that foster intra-organisational linkages.