This document discusses integrating risk management into management accounting practices. It begins with introductions of the speakers and an overview of the learning objectives for the session, which are to inspire how risk management can benefit work rather than burden it, and to show how risk management is good management when fully embedded. The agenda includes discussing core competencies, moving from separate risk management to building it into daily work, and a case study on coal boilers and sustainability. The document emphasizes that managing risk from the beginning of objective setting and keeping operations agile helps achieve objectives and create value. It concludes with a call to fully integrate risk management in a built-in way on a daily basis.

1. RM/IC – It’s What We Do

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Who Are We?
Steve McNally
 Finance Director/ Controller,
Campbell Soup
 Member, IMA Global Board
of Directors
 Member, COSO ICIF Refresh
Project Advisory Council
Vincent Tophoff
 Senior Technical Manager
IFAC
 Formerly Partner of INTE-Q
Integration Management
 Senior Lecturer at the Vrije
University in Amsterdam
 Participates in COSO, ISO
31000, and OECD
Governance Committees
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3. Today’s Learning Objectives

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Today’s Learning Objectives
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Provide inspiration and practical insight on leveraging risk
management as a benefit, not a burden, to our work
Show that:
 Our professionalism, as management accountants, is based on
using our core competences
 Good risk management is good management accounting, not
compliance, as risk affects our job and our objectives
 Risk management becomes virtually invisible when fully
embedded in our core management accounting practices, it is
implicit in everything we do!

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Today’s Agenda
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 Core Competencies
 From Bolt-On to Built-In
 Case Study Coal Boilers & Sustainability
o Part I: Strategic Decision-Making
o Part II: Implementation, Monitoring & Learning
 Recap & Call to Action

6. Core Competencies

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The Management Accountant
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 Management accountants:
o Enable sound decision-making & objective-setting
o Analyze & communicate operating results
o Evaluate & drive business performance
 They work inside all types of organizations
 They have a variety of job titles
 In short, they are business partners & strategic
advisors who focus on creating stakeholder value

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Our Key Competencies *
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The
Management
Accountant
Investment
Decisions
Planning,
Budgeting &
Forecasting
Decision
Analysis
Cost
Management
Corporate
Finance
Performance
Management
External
Financial
Reporting
Decisions
Financial
Statement
Analysis
* - CMA exam content

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Our Key Competencies *
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* - CMA exam content

10. From Bolt-On to Built-In

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Effective Risk Management…
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 In our management accounting activities we face
many uncertainties, both opportunities and threats,
that may affect achievement of our objectives
 Risk management provides a systematic way to
manage such uncertainties/risk more effectively…
 … By assisting us in making informed decisions
about what we want to achieve

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…To Achieve Our Objectives!
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 Facilitates the achievement of our objectives
 While complying with legal, regulatory & societal
expectations
 Enables us to better respond and adapt to surprises,
disruptions, and changes in the environment
How?
 From bolt-on to built-in: fully integrating risk management
into our daily management accounting activities

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From Bolt-on to Built-in
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Managing Risk as an Integral Part of Managing an Organization

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For that reason we have to…
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 Identify, assess, treat, report, monitor, and review risk
 Always in relation to the objectives we want to achieve!
 While giving consideration
to the ever changing
context
 And also…

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1)…Manage Risk from the Start
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 Objective setting is activity that involves most risk
 So, don’t wait until after we have established our objectives
 But, instead, let’s make risk management an integral part of
our decision making process to establish those objectives!

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2)…Communicate and Consult!
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3)…Make Informed Decisions
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High quality information is crucial to good decision making as
it reduces uncertainty
 Ensure access to timely, relevant & reliable data
 Arrange for expertise to analyze those data and turn them
into useful information
 Professional judgment must always
be professional

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4)…Remain Sufficiently Agile
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 We need to build both resilience and agility into
all our activities
 Being able to adequately respond to changes in
circumstances
and
 Deal with the consequences of unforeseen events

19. Case Study & Group Discussions

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Case Study
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 Objective: Demonstrate that good management
accounting is good risk management!
 Case Study Scenario: Coal Boilers &
Sustainability
 Phases of Case Study Discussion:
• Part I: Strategic Decision-Making
• Part II: Implementation, Monitoring & Learning

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Case Study Expectations
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 Review scenario
 Consider provided questions
 In small groups, discuss scenario & questions:
o Identify additional data or action requirements
o Formulate recommendations as appropriate
 Share outcome of discussions with full group
 Speakers to share final thoughts

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Case Study Part I: Decision-Making
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Case Study Part II: Implementation,
Monitoring & Learning
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Decision-Making Wheel
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25. Recap & Call To Action

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Recap
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 We, as management accountants, are business
partners and strategic advisors
 We benefit from a tool box of core competencies
 We know that good risk management is good
management accounting because…
 Good risk management enables us to achieve
our objectives and deliver stakeholder value

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Call To Action
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 Fully integrate risk management into your daily
management accounting activities:
 Always consider risk in relation to the objectives you want to
achieve
 Indeed, manage risk from the start, even in the process of
establishing those objectives
 Communicate and Consult
 Make informed decisions
 Remain sufficiently agile
 Learn & reapply as you go

28. 10 Paragon Drive, Suite 1
Montvale, New Jersey
07645-1760
U.S.A.
(800) 638-4427
+1 (201) 573-9000
www.imanet.org
10 Paragon Drive, Suite 1
Montvale, New Jersey
07645-1760
U.S.A.
(800) 638-4427
+1 (201) 573-9000
www.imanet.org

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Speaker Time Keeping (75 Minutes)
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 Distribute our articles and our recent blog
beforehand (electronically and in print)
 Intro, Learning Objectives, Agenda (10 Minutes)
 Core Competencies (5-10 Minutes)
 From Bolt-On to Built-In (5-10 Minutes)
 Case Study (30-45 Minutes)
 Recap & Call to Action (5-10 Minutes)