Climate change is forcing accountants to rethink risk management, new ACCA report explores
NEW YORK and LONDON, July 7, 2021 / PRNewswire / – Today, ACCA (Association of Chartered Accountants) published a new report, “Rethinking the risk for the future “, examine the unique role of the accounting profession in effectively managing risk amid the crises presented by climate change, the Covid-19 pandemic and the resulting economic turbulence.
The ACCA says that as information stewards, accountants can help organizations not only to detect and better understand the emerging risks and opportunities they face, but also to cultivate the necessary mindset. to think longer term. Capturing the perspectives of ACCA’s global members, the report presents their critical roles in building organizational resilience through enterprise risk management (ERM), financial reporting and business analysis. data.
You can read the latest ACCA report, “Rethinking the risk for the future ” here or to https://www.accaglobal.com/us/en/professional-insights/risk/rethinking-risk.html.
The report explains that while COVID-19 is the biggest crisis in a generation, businesses and society also face enormous risks from rapid climate change – perhaps the greatest risk of all. Risk management has therefore emerged as never before. Accountants now have an unmissable opportunity to reassess how they can add more value in a post-Covid world where a myriad of environmental, social and economic risks are prevalent.
“What is clear from the round tables that we have organized with ACCA members is the need for accountants to truly understand the strategic and business risks facing their organizations in the short, medium and long term”, said Rachel johnson, author of the report and head of risk management and corporate governance at ACCA. “In this way, they can help maintain operational resilience in today’s rapidly changing interconnected environment. “
Capturing the views of its global members, the report reveals their concerns over industry disruption as the biggest risk to organizations over the next two years, followed by international trade, cyber threats and weather conditions. extremes.
“This year, the pandemic has forced us all to learn vital new lessons about effective risk management, and disaster preparedness is now high on the organizations agenda,” said Jillian Couse, Director of ACCA North America. “The challenge now is how this readiness is maintained by organizations in the face of other crises, including climate change, creating an opportunity for the accounting profession to show its value by rethinking risk. “
The report highlights a range of organizations that have fully embraced goal-based risk management, including the Calgary Parking Authority, which has invested in making its parking infrastructure adaptable and multi-functional to benefit organizational results. , while creating the necessary community resources in the form of public leisure space.
“Becoming a sustainable, goal-oriented business is a journey that requires vision and integrated thinking. You can’t go from step 1 to step 10 overnight, ”said Shahid Qureshi, Chairman of the Board of Directors of the Calgary Parking Authority and Member of the ACCA Global Forum for Governance, Risk and Performance. “You have to think about it, and it starts with finding the right balance for all of your stakeholders – customers, employees, suppliers, the local community and your shareholders. “
Rethinking the risk for the future concludes that risk can no longer be managed in isolation. Accountants, given their skills and professional obligations, are in a privileged position to optimize their storytelling skills in new ways by creating more dynamic reporting metrics and methodologies.
The ACCA believes accountants should take a more advisory role in explaining the facts and possibilities behind the numbers, breaking them down and putting them into context for their organizations. The current environment creates an opportunity for accounting to encourage more collaboration and collective action on environmental, social and governance issues by working with policy makers and partnering with leaders to help understand how digitization and new technologies can help prevent harm to people and the planet.
The Association of Chartered Certified Accountants (ACCA) is the global professional body for accountants.
We are a thriving global community of 233,000 members and 536,000 future members based at 178 countries and regions, which work in a wide range of sectors and industries. We defend the highest professional and ethical values.
We offer everyone and everywhere the opportunity to enjoy a rewarding career in the fields of accounting, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential to building sustainable organizations and successful companies.
Since 1904, being a force for the public good has been anchored in Our goal. We believe that accounting is a fundamental profession of society and that it is vital in helping economies, organizations and individuals to grow and prosper. It does this by creating strong and reliable financial and business management, fighting corruption, ensuring organizations are run ethically, fostering sustainability and providing rewarding career opportunities.
And through our cutting-edge research, we lead the profession in answering today’s questions and preparing for the future. We are a non-profit organization. Learn more about accaglobal.com.
SOURCE ACCA (Association of Chartered Chartered Accountants)