Abstract:
It has been suggested in previous research that it might be worthwhile
to include risk measures in the balanced scorecard (BSC) or to rework it
in order to manage risk. The literature review in this study indicated that
some conceptual and case study research has been done to investigate
how an organisation could go about accomplishing this. A number
of researchers noted that including risk measures on the face of the
scorecard might lead to a problem of over-complexity. Using content
analysis as the method of inquiry, this study explored how organisations
are currently adding risk to their scorecards. The key finding of the study
was that organisations that have reported adding risk measures to
their BSCs are predominantly adding risk measures to the face of their
scorecards. This finding is interesting because it would indicate that the
previously reported and conceptualised problem of complexity does not
seem to have such a great impact as previously thought.