ACCA and IMA: Preparing Your Company for Change and Disruption

According to a new report from ACCA (Association of Chartered Certified Accountants) and IMA (Institute of Management Accountants)), companies must regularly and systematically to include emerging risks to stimulate innovation. More information about the report, "Innovation and ERM: partners in managing shock waves"

The traditional thinking about strategy has become less relevant as a disturbance wave accelerates the pace of business. The report, written by Dr. Paul L. Walker, Ph.D., CPA, highlights the main ways in which enterprise risk management (ERM) can be linked successfully for strategy and innovation, including:

• Interpretation of disturbing waves: By integrating risk detection tools, companies can anticipate and respond to disturbances waves more easily.
• Rethinking the strategy and tools: With the tools that improve understanding of the risks, companies can develop and modify the key assets to combat changes in the external environment.
• Innovate business models: In response to the risk, it is important for companies to innovate not only in their fields but also consider the innovatios business model.

In accounting and finance profession specifically, understanding the risks is a key to successfully hijack the failure of a company to success. Consequently, there is increasing pressure for accountants to develop a keen sense of business risk on your financial experience.

"Financial professionals are generally risk averse, but need to expand your comfort level to become true strategic partners," said Raef Lawson, Ph.D., CMA, CPA, Vice President of Research and Policy at the IMA. "CFOs and finance future professionals need a change of mentality of accounting and control to focus on value factors in the company."

ERM not only allows a company to innovate but can also protect the decline in innovation. Companies that are new and strategic things to create their own wave of unrest must also manage risk and uncertainty. This requires a different approach to capturing new ideas and new tools for risk.
"Innovation without knowing the risk is the main reason for failure," said Faye Chua, Managing Director of Business Insights at ACCA. "Being proactive in planning against unforeseen challenges paves the way for success in times of uncertainty."

This report is a product of the strategic alliance between ACCA and IMA, focusing on research to study the future of global accounting profession.