Accounting Tools Used in Enterprise Risk Management

As you learned, managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. 

Managerial accountants provide a number of reports to help leaders in risk management decisions, including:

• Key benchmarks such as sales, orders received, capacity utilization
• How well managers are performing
• Comparison of results to certain benchmarks or related firms/businesses
• Analytical reports to investigate specific problems including decline in profitability

For financial risk management, all of the tools and strategies you've learned thus far can be employed to help company leadership make better decision and minimize financial risk.

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