PurposeThe purpose of this paper is to introduce the concept of an Enterprise Risk Scorecard.Design/methodology/approachWith the accelerating growth in global risk levels leading to an intense current demand for risk management solutions, an analysis was conducted on whether a scorecard framework could be applied to risk measurement. This analysis included a survey of Kaplan and Norton's voluminous and seminal writings on the Balanced Scorecard, in which, surprisingly, relatively little on the measurement of risk was found.FindingsThe findings suggest that a scorecard framework could be an effective risk measurement, management and communication tool. For both design and organizational reasons it is recommended that risk scorecards be separate from performance scorecards.Research limitations/implicationsUtilizing two scorecards – one for performance and a separate one for risk – could provide strategy‐focused organizations with a more comprehensive diagnostic control system. The research implications of this approach could be significant, as it essentially opens up a new field of research.Originality/valueThis is assumed to be the first formal paper on risk and a scorecard framework. Previous work on integrating risk measurement frameworks is very different from the approach proposed here.

The performance of the property and casualty (P&C) insurance industry has suffered in recent years, even prior to the losses incurred in the tragic events of September 11th. Part of the industry's difficulties stems from its focus on premium generation, as measured by the combined or underwriting ratio, at the expense of overall operational performance. In this regard, the underwriting ratio is an incomplete measure of operating performance since it ignores two critical P&C operational functions: investment return and reinsurance results. 2002 Morgan Stanley.

Warren Buffett, the Chairman and CEO of Berkshire Hathaway, has been a remarkably successful acquirer . . . Buffett generally does not overpay for acquisitions. ''

PurposeThe purpose of this paper is to introduce the relative profitability and growth matrix and to demonstrate its use as a competitive analysis tool.Design/methodology/approachTwo well‐known drivers of value are profitability and growth. After a study of 2 × 2 matrices we applied these drivers on a relative or industry comparative basis to a 2 × 2 matrix, and then we applied that matrix to competitive analyses of two industries to assess its strategic utility.FindingsOur findings suggest that the relative profitability and growth matrix could be a useful competitive analysis screening and communications tool.Practical and research implicationsThe relative profitability and growth matrix assesses a firm's profitability and growth relative to its industry and by so doing helps to identify and classify performance in a succinct format that facilitates further analysis. After such analysis has been completed the matrix can also serve as a convenient tool to communicate the analytical findings.Originality/valueThe relative profitability and growth matrix is a value‐driver based 2 × 2 matrix, the strategic utility of which is demonstrated and explained in two examples.

The property and casualty (P&C) insurance industry has historically focused on the underwriting or combined ratio as the primary measure of operating performance. Many dramatic changes have occurred in this industry and its operating environment over the past 30 years, which have reduced the importance of the underwriting ratio. An alternative performance measurement system, the insurance performance measure (IPM), is presented and illustrated. The IPM integrates all areas P&C operating activity into a measure more comprehensive that the underwriting ratio.