Performance Measurement

Abstract

This chapter provides coverage of the primary risk and return performance measures. In particular, it will show – the context for the importance of risk and return in decision-making; − how to distil the primary performance measures from the objectives and expectations of the company’s stakeholders;. – risk-adjusted performance measures relating to plan, profit and return on capital; − the common risk appetite dimensions and how they can be developed; − how the delivery of the performance metrics is managed through a risk appetite and limit framework.