References in Risk Management
Risk is an inescapable element of competing in a market economy. Organizations must be able to evaluate many types of risk — political, social, environmental, technological, economic, competitive, and financial — and incorporate the results into decisions regarding investments and operations, as well as into the systems used to monitor and evaluate the effectiveness of the actions taken. Adriana Rejc Buhovac has, among other publications, developed two Management Accounting Guidelines
Identifying, Measuring and Managing Organizational Risks for Improved Performance
This guideline provides a Risk Management Payoff Model that includes a selection of performance measures to properly identify, measure, manage, and report risks. The model demonstrates that improved risk measurement and management not only helps the organization prevent loss, achieve performance and profitability targets, and increase shareholder value, but also produces organization-wide benefits, such as allocation of resources to the risks that really matter, enhanced working conditions, and sustained or improved corporate reputation.
The Reporting of Organizational Risks for Internal and External Decision Making
Just as senior managers need more complete risk assessments for better management decision-making, external shareholders and other stakeholders are demanding increased reporting of these risks to better evaluate corporate performance. Financial professionals want to provide a clear understanding of the risks and fair disclosure to both internal and external decision-makers without causing unnecessary alarm.This Guideline addresses these important issues and provides guidance for the reporting of risks for both internal and external decision-making.