Essay about No File

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Risk management in accounting.
The management of risks is a central issue in the planning and management of any venture and so is the process of understanding how to manage the risks to achieve objectives. This review will highlight risk management in accounting by focusing on the definition, importance and types of risk.
To begin with, a definition of risk management in accounting as provided by American Intercontinental University (2013, para.1) is “the process of a involved with a company or firm’s business practices” (sic). In fact, in many cases it is not only in business but also in many other fields. On the other hand, Collier, Berry and Burke (2007, p.61) define risk management accounting as “concerned with the generation, dissemination and use of risk … to enable them to judge and shape … the situation of the organization according to the objectives”. This provides an awareness of particular risk and improves the effective use of this information.
Furthermore, one of the important reasons for risk management in accounting may be considered with completing objectives. Collier et al., (2007, p.113) indicate that change of management accountants is also significant “in establishing the context for their role in risk management and wider views of management control”. They make a valid point when they evaluate that accounting accounts for important position in risk management. In addition, Barnes (2001, p.22) states that accounting framework affects directly to risk management policies.
Also, it is essential to understand the

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