ABSTRACT
This chapter discusses performance, risk, uncertainty, resilience and related concepts. It seeks to create a platform for understanding key concepts of performance management and risk management through identification of common and disagreeing ideas and principles. This includes an exploration of the historical impetus for why the fields diverged on particular principles. Performance management is becoming an increasingly critical component of an effective business strategy. Aspects of performance management drive essential functions, such as setting shareholder expectations, managing reliability, managing quality, and benchmarking efficiencies. The thinking clarifies the different aspects of uncertainty and knowledge related to performance and risk, and stresses the need for always questioning how well the concepts are measured or described. The management of performance-risk should include decision-support mechanisms to enable decision-makers to choose system investments with consideration of issues like competing performance-risk objectives and different views among stakeholders.
