Potential risks associated with Value-Based Management could include a too narrow focus on financial performance, potentially leading to neglect of other important aspects of business such as customer satisfaction, employee engagement, and corporate social responsibility. There's also a risk of short-termism, where the focus on delivering shareholder value might lead to decisions that boost short-term profits at the expense of long-term sustainability. Additionally, implementing VBM requires a cultural shift within the organization, and resistance to change can pose a significant challenge.
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