A recent Management Accounting Guideline “Identifying, Measuring, and Managing Organizational Risk for Improved Performance”, developed a model and measures for improving the identification and measurement of risks to improve management decisions. Clearly these risks are both larger and more varied than ever previously thought and, they are more global. 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.
The Reporting of Organizational Risks for Internal and External Decision-Making
The Society of Management Accountants of Canada
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