The Association of Chartered Certified Accountants and the Institute of Management Accountants have released a new report on how companies can deal with enterprise risk management to minimize business disruptions.
The report, written by Dr. Paul L. Walker, a professor of accounting and taxation at St. John's University in New York, explains how companies can predict and respond to disruptions such as economic downturns and increased competition. They can use various tools to better understand risks, and adjust their business models to accommodate risk.
Companies can also use enterprise risk management to better control their own risks and uncertainties when they try to create their own disruptions within their industry. In the accounting and finance profession, understanding risk can help accountants divert a company away from failure to greater success, according to the report, but accountants need to develop more familiarity with business risks in additional to their financial know-how.
The report is available here.