Document Type : case-study

Authors

• Haider Rabiei ¹
• mahsa bayzidi ²

¹ Professor at the University of Tehran and financial, economic and investment strategies consultant

² Kharazmi University

Abstract

Recent global events, particularly the global financial crisis, have refocused and intensified attention on risk and the nature of the systems that operate to manage risk. One area that has received relatively little attention is the relationship between risk, risk management, and the performance of accounting and management control. This editorial introduces a special issue of the journal on “Risk and Risk Management in Accounting and Management Control.” It is based on the claim that risk and the way it is managed have become a feature of organizational life in both the public and private sectors. By changing the ways in which organizations are organized, risk management can facilitate and legitimize certain ways of organizing. It has the potential to shift the lines of responsibility and accountability in organizations and to represent a particular approach to individual governance and activities. It is further argued that risk management has moved from being a financial (value at risk, derivatives, etc.) or accountant (financial statements, etc.) issue to a management control issue and is therefore a key area in which management accountants need to be involved. The editorial also highlights potential side effects of risk management, including issues related to trust and accountability, as well as a focus on secondary or defensive risk management and the emergence of reputational risk.

Keywords

• Risk management
• management accounting
• management control

Main Subjects

• Accounting
• Financial Management
• Financial Engineering