ABSTRACT
This chapter focuses on the way in which an effective management accounting function makes an important contribution to risk management by improving decision-making and thus helping organisations to succeed in achieving their objectives. It starts by considering why decision-making is now more challenging and important than in the past as well as the role that management accounting plays in decision-making. It then explores the key principles on which an effective management accounting function should be built and applies these specifically to the practice of risk management. It explains the importance of integrating risk management into the normal course of business and how, as a consequence, good risk management is good management accounting. The chapter provides a number of examples to show how management accounting practice is developing in terms of achieving this integrated approach. It also explores an emerging area of development in which an organisation's business model is used as a framework for deepening the risk assessment process.
