Risks and internal control in the organization management

Recently, due to the increasing complexity of the conditions for running business, the top management of organizations is highly interested in risk-based management technologies. Management is based on control, at the same time, control can be considered as risk limiting activity. Also, the risks can be considered as a management object. The combination of control and risk management has recently received an increasing attention in management technologies. The methods ensuring management decisions should be based on a scientific justification. In the theoretical study of their interrelations, there are many problematic issues that have not been completely described, and there are no unified approaches to them. The main objective of the study is to determine how control interact with risk management, while running business, which of them is primary? This is necessary for the scientific substantiation of the basic principles of their interaction, which will make it possible to use knowledge for creating control and management techniques. General scientific cognition methods were used in the work. The systematic approach and logical generalization helped to systematize the main scientific generalizations. Legal and linguistic analysis provided an opportunity to identify common and particular features of accounting categories, risks, control and the principles of their interaction in management. The scientific hypothesis served as the starting point of the study. Risk management means risks accounting and analysis. It is advisable to identify risks for each level of management and process. Identification of risks means their assessment, analysis and accounting at all levels of management and for all processes. However, finally, everything depends on control, because each risk must be constantly observed to understand the effectiveness of its management. Control has its own tools: accounting, analysis. The idea is that, along with accounting and analysis, risk management is a monitoring tool. The peculiarity is that the control can only function in the mode of comparison between the planned and the achieved. To understand the achievement degree of the planned, the results of the monitored activity must be taken into account in any appropriate way. The process of comparison is mostly in the analysis. The place of accounting and analysis for control and risk management affects management technologies. In the case when the control takes the form of a risk-oriented one, in addition to accounting and analysis, a set of actions aimed at identifying and limiting risks becomes its tool, that what we call risk management. © 2020, Institute of Advanced Scientific Research, Inc.. All rights reserved.

Serebryakova T.Y.1 , Fedorova L.P.2 , Gordeyeva O.G.3, 4 , Malinovskaya N.V. 5
Institute of Advanced Scientific Research, Inc.
Номер выпуска
7 Special Issue
  • 1 Cheboksary Cooperative, Institute Branch of Russian University Cooperation, Cheboksary, Russian Federation
  • 2 Cheboksary Cooperative Institute (branch), ANOOVO Centrosoyuz of Russia "Russian University of Cooperation", Cheboksary, Russian Federation
  • 3 Accounting Department, Cheboksary, Russian Federation
  • 4 Cooperative Institute (branch), ANOOVO Centrosoyuz of Russia "Russian University of Cooperation", Cheboksary, Russian Federation
  • 5 Peoples' Friendship University of Russia, Financial University, Moscow, Russian Federation
Ключевые слова
Accounting; Analysis; Internal Control; Management; Risk Management; Risks
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