Are You Including Accountants in Your Risk Management Planning?
Developing a comprehensive enterprise risk management strategy means incorporating every level of business in the planning process – but your organization’s accounting department may be an underutilized resource.
The Association of Chartered Certified Accountants (ACCA) has published a new report that looks at the role of the accounting profession in effective risk management. In particular, accountants are in a position to help detect and better understand emerging risks, as well as take a long-term view for risks like climate change.
Using COVID-19 as a triggering event, the report identifies ways accountancy can be used to navigate organizations through interconnected risks by finding missing links, deeper scenario analysis, and predictive analytics.
“The world was already going through enormous geopolitical, social and digital transformations before COVID-19 struck, but the level of uncertainty these changes pose along with the exigencies of climate change have been exacerbated by the global pandemic. Accountants can help companies understand what these rapidly changing risks mean and make sure they do not miss the associated opportunities.”
A potential first step for organizations is collaboration – incorporating accountancy into environmental, social, and governance matters when developing connections and future planning with both the public and private sectors.
Click here to download the complete report.