Do you think the accountants have risk management skills?
Risk Management In Accounting
Name
Institution Affiliation
Risk Management In Accounting
- Introduction
- Risk management in accounting is an important concept that helps the organizations deal with uncertainties
- Just like any other sector, the field of accounting confronts many risks which require a well-established risk management plan
- Attention Getter: Do you think the accountants have risk management skills?
- Central Idea (thesis statement): The central focus of this paper is to discuss the risk management, why the topic was selected, and how it relates to the accounting major.
- Main Point 1: The topic selected is risk management in the accounting which is a concept that focuses on assessing the risks that affected the business and how to manage them
- Sub Point
- Many firms in the field of accounting are yet to reccognize the benefits that are associated with the idea of risk management
- Sub-subpoint for A
- The firms should be in a position to embrace the concept of risk management because it has serious financial benefits
- Sub-subpoint for A
- In order to effectively manage the risks in the field of accounting, there is a need for collaboration between all the stakeholders and the available resources (Soin & Collier, 2013).
- The adoption of technology in the process of risk management encourages the firms to use risk management software; for instance, enterprise risk management.
III. Main Point 2: The rationale for selecting risk management in accounting
- Sub Point
- The discussion of this topic provides some knowledge and insight into different types of risks in the organization and the methods of dealing with them
- Most of the organizations that are yet to embrace enterprise risk management tool lacks knowledge and understanding of the topic. However, the knowledge acquired from this analysis may be beneficial to the firms.
- Sub-subpoint for A
- The knowledge gained from the analysis of this topic could be applied in the future workplace to mitigate and manage various forms of risks
- Also, acquiring some insights on this topic is important to every entrepreneur since it will be used in streamlining the business operations
- Sub-subpoint for A
- Lack of preparedness and knowledge about disaster management has a negative implication on the business and the industry at large
- For instance, many financial institutions have been affected by the crisis that has been brought by the outbreak of the COVID-19, if the firms were well prepared for the same, it would be easy for them to deal with the current financial recession (Soin & Collier, 2013).
- Main Point 3: Risk management is associated with my major because, in the field of accounting, many risks require an effective management approach
- Sub Point
- My major is accounting, a field that focuses on financial matters of the organizations
- The topic of this analysis being risk management in accounting, there is no doubt that it is related to my major
- Sub-subpoint for A
- Disasters are ever occurring in different parts of the world, and most of them usually present a financial risk to the accounting sector
- This present the need for the risk management approach in the field of accounting
- Sub-subpoint for A
- Risks associated with the cyberattacks may have a serious impact of the accounting and this present the need for establishing an effective approach of managing them
- Conclusion
- Thus, risk management is a field that cannot be separated from the field of accounting
- Review of Main Points:
- In this analysis, the risk management has been portrayed as a beneficial concept which helps the field of accounting handle various risks
- It is associated with my major because it’s a core tool in handling various emergencies
Reference
Soin, K., & Collier, P. (2013). Risk and risk management in management accounting and control.
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APA
4583 words