How Do Accountants Assist With Risk Management?

risk compliance

A professional accountant plays an important leading role in helping an organization with their internal controls and risk management. In addition to drafting financial statements or helping with financial strategy, a prospective accounting professional must be prepared to deal with all of the uncertainties that an organization can face. Read on, and learn just how accountants must be able to prepare with positive and negative risks that present themselves without the proper type of internal control.

What is the Role of the Accountancy Profession In Terms of Managing Risk?

One of the core competencies of the accountancy profession is improving the internal control program of an organization in an effort to managing and reduce risk. While some staff accountants may only be responsible for basic tasks, accounting managers and other lead professionals will play a role in designing, planning, implementing, executing and even monitoring risk managing activities and programs.

It is not out of the ordinary for a lead or manager to organize and prepare training sessions so that all staff members can become familiar with all risk control language and with the standards that must be met with all financial operations. By training and then implementing the standards, accountants will be at the front lines where they will assist leaders in considering the risks before  key decisions are made. In this way, accountants have become strategic partners to business leaders in helping organizations thrive.

How Can You Learn to Become an Accounting Professional and Risk Manager?

To become a professional in accountancy you need to complete a formal training program. The best accounting program will take between 4 and 5 years to complete and will cover a wide range of different topics. After taking two years of general studies, you will take courses that are focused on strictly accountancy. In addition to taking courses in financial accounting, managerial accounting, cost-benefit analysis, capital management, financial statements and international business, you will take courses in strategy and risk management tactics. If you want to go a step further and focus on real-world issues in the accounting field, you can complete a Master of Accountancy program and specialize in a managerial accounting or complete a complete a Master of Business Administration program and gain a broader management focus.

How to Show You Are a Capable Risk Manager

You can show that you are a tried and true risk manager through professional experience, or you can earn a credential that shows your commitment to the field. The Certified Management Accountant credential is one that shows that you are an expert in internal controls and protecting the resources of an organization in addition to many other things. To become a CMA, you will need to possess at least a Bachelor’s degree.

The accounting profession has changed dramatically. Now, accountants are more than just number-crunchers who are stuck at a desk writing reports and balancing the books. In addition to this, an accountant is a strategic partner within an organization that specializes in risk management and helps to protect the company resources.

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