Krylov S.I.Ural Federal University named after First President of Russia B.N. Yeltsin, Yekaterinburg, Sverdlovsk region, Russian Federation 19016708@rambler.ru
Importance In complex environment of the modern market economy, every managerial decision, especially strategic, concerning future development of an organization, always implies certain degree of uncertainty. Therefore, the problem of building an effective system to manage risks inherent in the economic activity of an organization has a significant importance in the long-term perspective. Objectives In this article, base on foreign experience, I focus on interaction between the balanced scorecard system and the risk management system, which is aimed at increasing transparency within a company and developing risk-oriented mentality and responsibility of all employees. Methods The methodology of the research is the Balanced Scorecard concept developed by R. Kaplan and D. Norton, and the conceptual framework of risk management. Results The article explains that the risk-management and the Balanced Scorecard systems are based on using indicators (the so called "early" indicators). Both systems describe measures that are necessary to achieve goals and mitigate risks. The risk management system's integration in the general management system is the most effective if it has direct links with strategic goals of an enterprise. Establishing a link between the measures developed within the Balanced Scorecard system and the measures developed within the risk management system bases on the analysis of the measures and identifying the most effective ones in terms of risk mitigation. For most projects, about three months are necessary to build an integrated model of the Balanced Scorecard system and risk management system at every level of organizational hierarchy. The built integrated model enables to make strategic and prompt management decisions. Conclusions and Relevance I conclude that in modern conditions the integration of Balanced Scorecard and risk management systems will enable to enhance the efficiency of risk management inherent in economic activities of an organization.
Keywords: balanced scorecard, management, risk
References:
Kaplan Robert S., Norton David P. Sbalansirovannaya sistema pokazatelei. Ot strategii k deistviyu [The Balanced Scorecard. Translating Strategy into Action]. Moscow, Olimp-Biznes Publ., 2006, 304 p.
Kaplan Robert S., Norton David P. Strategicheskoe edinstvo: sozdanie sinergii organizatsii s pomoshch'yu sbalansirovannoi sistemy pokazatelei [Alignment: Using the Balanced Scorecard to Create Corporate Synergies]. Moscow, Olimp-Biznes Publ., 2006, 384 p.
Krylov S.I. Razvitie metodologii analiza v sbalansirovannoi sisteme pokazatelei [Developing the methodology of analysis in the Balanced Scorecard system]. Finansy i statistika Publ., 2010, 152 p.
Krylov S.I. Sbalansirovannaya sistema pokazatelei kak analiticheskii instrument strategicheskogo upravleniya v usloviyakh sovremennoi rynochnoi ekonomiki [The Balanced Scorecard system as an analytical instrument in conditions of modern market economy]. Ekonomicheskii analiz: teoriya i praktika – Economic analysis: theory and practice, 2007, no. 24, pp. 2–10.
Olve N., Roy J., Wetter M. Sbalansirovannaya sistema pokazatelei. Prakticheskoe rukovodstvo po ispol'zovaniyu [Performers Drivers: A Practical Guide to Using the Balanced Scorecard]. Moscow, Vil'yamsPubl., 2006, 196 p.
Pearce II J., Robinson R. Strategicheskii menedzhment [Strategic Management]. St. Petersburg, Piter Publ., 2013, 496 p.
Rampersad H. Universal'naya sistema pokazatelei. Kak dostigat' rezul'tatov, sokhranyaya tselostnost' [Total Performance Scorecard: Redefining Management to Achieve Performance with Integrity]. Moscow, Al'pina Biznes Buks Publ., 2006, 352 p.
Fridag Herwig R., Schmidt Walter. Sbalansirovannaya sistema pokazatelei: rukovodstvo po vnedreniyu [The Balanced Scorecard: route introduction]. Moscow, Omega-L Publ., 2006, 272 p.
Horvath & Partners. Vnedrenie sbalansirovannoi sistemy pokazatelei [Balanced ScoreCard]. Moscow, Al'pina Biznes Buks Publ., 2006, 484 p.
Kaplan R.S. How the Balanced Scorecard complements the McKinsey 7-s model. Strategy and Leadership, 2005, no. 3, pp. 41–46.
Kaplan R.S., Norton D.P. Measuring the strategic readiness of intangible assets. Harvard Business Review,2004, no. 2, pp. 52–63.
Kaplan R.S., Norton D.P. Putting the Balanced Scorecard to work. Harvard Business Review, 1993, no. 5, pp. 134–142.
Kaplan R.S., Norton D.P. Strategy maps. Harvard Business School Press, 2003.
Kaplan R.S., Norton D.P. The Balanced Scorecard: measures that drive performance. Harvard Business Review, 1992, no. 1, pp. 71–79.
Kaplan R.S., Norton D.P. The execution premium: linking strategy to operations for competitive advantage. Harvard Business School Press, 2008.
Kaplan R.S., Norton D.P. The office of strategy management. Harvard Business Review, 2005, no. 10, pp. 72–80.
Kaplan R.S., Norton D.P. The strategy-focused organization: how Balanced Scorecard companies thrive in the new competitive environment. Harvard Business School Press, 2001.
Kaplan R.S., Norton D.P. Using the Balanced Scorecard as a strategic management system. Harvard Business Review, 1996, no. 1, pp. 75–85.
Kaplan R.S., Norton D.P., Rugelsjoen B. Managing alliances with the Balanced Scorecard. Harvard Business Review, 2010, no. 1, pp. 114–120.
Maisel L.S. Performance management: the Balanced Scorecard approach. Journal of Cost Management, 1992, no. 2, pp. 47–52.
Norreklit H. The balance on the Balanced Scorecard a critical analysis of some of its assumptions. Management Accounting Research, 2000, no. 1, pp. 65–88.
