ABSTRACT
This chapter discusses some aspects related to category obtaining the “right” performance and risk level. It focuse on the general enterprise risk management principles. The chapter looks specifically into the practice of specifying performance requirements. It addresses cost-benefit type of analysis and shows why it is necessary to see beyond these analyses to provide adequate decision support. The chapter discusses links between analysts and decision-makers. The quality management discipline emphasizes also the need for highlighting improvement processes rather than focusing on setting numerical goals. Decision-makers are informed by analysts, but the analyses do not report an objective “truth” about performance and risk, only justified judgments and beliefs. Cost-benefit type of analysis supports development, as uncertainties and risks are given little weight and need, therefore, to be used in relation to other principles supporting protection. The chapter addresses the topic of reputation loss resulting from operational and strategic decisions.
