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Risk management has traditionally been occupied in eliminated downside exposures. This paper puts forward the idea of total risk management as the ability to respond to market factors beyond management control so as to stabilise corporate earnings. This in turn will lead to enhanced trust by investors and stakeholders and result in enhanced performance. The paper reports on an empirical study that examines the performance relationship of total risk management and finds a positive relationship, especially among firms investing in innovation and those operating in knowledge-intensive industries.