Elements of risk-oriented management accounting

Abstract

Purpose: the article defines the necessity of creating a risk-oriented management accounting system for informing managers, controlling these risks, about the risks of the organization in a timely manner. The need of setting up of a risk-oriented management accounting system is based on the activities of the organization in conditions of uncertainty, and as a result, the information needs of managers at different levels increase. Discussion: the article sets out the requirements to the system of risk-based management accounting, proves techniques for their implementation and identifies provisions that need to be developed and to disclose them in the accounting policies for the purposes of management accounting. The article focuses on the importance of effective internal control system in reducing the risks of the organization. The article emphasizes the need for cooperation between management and financial accounting in relation to risk assessment and disclosure of information for users. Results: the article proves the principal elements of the risk-oriented management accounting system, development of which will not only inform managers of different levels on the status of risk areas, but also mitigate the impact of risks for the organization, to reduce losses from the practical occurrence of concrete risks.