Enterprise Risk Management – Approaches Determining Its Application and Relation to Business Performance

Abstract

Purpose: As management systems, enterprise risk management and enterprise performance management pursue similar objectives and influence each other positively. The paper aims to provide an insight into the relationship between Enterprise Risk Management and Business Performance Management. Methodology/Approach: The paper compares the results of an American study with the results of a Slovakian study. First, the American results are cited and interpreted. Then the Slovak results are presented and discussed. Then the results are compared. In the last part an overall conclusion is drawn, the relationships between the results are shown and practical implications are explained. Findings: The results show similarities, but also differences to Enterprise Risk Management and the relationships between Enterprise Risk Management and Business Performance Management. The paper shows that there are differences in both the management approach and the impact on business performance between American and Slovak companies. Research Limitation/implication: A limitation in both studies is the limited number of participating companies. This is accompanied by a higher probability of error. Originality/Value of paper: The paper provides new information to the gap related to subjects enterprise risk management and business performance management and their relations.