Performance management is now more correctly being defined as a much broader umbrella concept of integrated methodologies - much broader than its previously misconceived, narrow definition as simply being better strategy, financial budgeting and control. What could possibly be an even broader definition? My belief is performance management is only part - but a crucial, integral part - of how an organization realizes its strategy to maximize its value to stakeholders, both in commercial and public sector organizations. This means that performance management must be encompassed by a broader overarching concept - intelligent risk management.

Risk governance awareness from government legislation such as Sarbanes-Oxley and Basel II is clearly on the minds of all executives. Accountability and responsibility can no longer be evaded. If executives err, they can go to jail. However, risk management is not about minimizing an organization's risk exposure. Quite the contrary, it is all about exploiting risk for maximum competitive advantage. A risky business strategy and plan always carries the highest premium prices.

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