Integrating Balanced Scorecard and Enterprise Risk Management in Banking

Risk management that created from credit risk management, market risk management, liquidity risk management, operational risk management, legal risk management, reputation risk management, risk management strategies, and compliance risk management become incentive for top management (CEO) in determining better performance management decisions Performance management of commercial banks is an important aspect of banking business management. This paper makes study about how to use the Balanced Scorecard as a tool, which is applied to commercial banks performance management system, and points out that it breakthrough the defects in the traditional single application of financial indicators which measures performance. And it raises the value of performance management appraisal system based on the introduction of customer factors, internal business processes, employee learning and growth and financial factors. This paper also makes study about the commercial banks in the performance of the Balanced Scorecard Management System mechanism, the strategy of application, application limitations, and outlook on the future of commercial banking services model based on the above points