Explain the term- quality of decisions, Financial Management

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Explain the term- quality of decisions

Performance and business risk

This is focussed on "quality of decisions".

The comparison of an organisations performance with the others is a very important part of performance measurement, identifying organisations (not necessarily in the same industry as 'yard stick 'for which performance can be compared to. Board should identify the key risk  areas  and  key  performance  indicators  of  business  and  continually  monitor  and compare these to improve business processes and help safeguard against any impact by competitors.  Management  make  detailed  reports  on  these  benchmarks  to the  board  to  help them carry out this monitoring process.

 


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