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Business

Becoming a strategic risk adviser: How CPAs can move from compliance to strategy Logo aicpa

  Bonnie V. Hancock and Mark S. Beasley, CPA |   Free |   AICPA |   01 Feb 2015 |   Journal of Accountancy

Traditionally, CPAs have focused more on loss prevention than on the risksimpacting an enterprise’s strategic direction and success. This article discusses how CPAs who use their experience and skills to move beyond compliance can help their organizations navigate risks before they occur.

Topics covered:
  • Management accounting: Business: Strategy, Intermediate
  • Management accounting: Technical: Risk management & internal control: Risk identification & assessment, Intermediate
  • Employee benefit plan auditing: Business: Strategy, Intermediate
  • Governmental auditing: Business: Strategy, Intermediate
  • Financial accounting & reporting: Business: Strategy, Intermediate
  • Assurance: Business: Strategy, Intermediate
  • Not-for-profit: Business: Strategy, Intermediate
  • IT management & assurance: Business: Strategy, Intermediate
  • Firm practice management: Business: Strategy, Intermediate
  • Tax: Business: Strategy, Intermediate
  • Forensic & valuation services: Business: Strategy, Intermediate
  • Fair value measurement: Business: Strategy, Intermediate
  • Personal financial planning: Business: Strategy, Intermediate

9 Comments/Reflections

Dengmei Xia

Dengmei Xia Dec 2017

A good accountant should be a strategic risk adviser for accountants typically have significant training and experience in managing risks related to internal controls, financial reporting, and other compliance matters.However, many accountants cannot identify risks and do not know how to prevent risk. This article tell us the steps to become a strategic risk adviser.The first step to becoming a strategic risk adviser is to understand what drives the business, what is on the horizon related to new strategic initiatives, and what internal or external events might prevent strategic initiatives from deriving value for the organization.The next step is to suggest ways to manage strategic risks. For example, accountants can use their training with internal controls and their knowledge of profitability drivers to help facilitate the development of “triggers” or “stop loss” limits that set the boundaries for the financial losses an organization is willing or able to withstand.
James Muir

James Muir May 2016

This paper was helpful when we appraised our Key Account Management Programme (KAM) and developed a number of strategic risk initiatives to retain and grow our loyal customer base.In a faster moving enviroment, a greater focus on emerging disruptive innovations is now in place.
James Muir

James Muir May 2016

This paper was helpful when we appraised our Key Account Management Programme (KAM) and developed a number of strategic risk initiatives to retain and grow our loyal customer base.In a faster moving enviroment, a greater focus on emerging disruptive innovations is now in place.
Mohammad  Ahmad

Mohammad Ahmad Mar 2016

Katie Cunningham

Katie Cunningham Dec 2015