The CGMA website offers management accountants a collection of tools and resources which are useful to identify, assess and respond to  various types of risk faced by an organization.
For example, it identifies risks in four categories –
extended enterprise risk, cyber risk, ethics and governance risk, and fraud. In accessing risk, it offers resources on tools such as heat map and scenario planning. On risk management, resources on financial risk, process risk and innovation risk are also available. The role of the board in managing organizational risk is also mentioned. Many management accountants sit on boards, and those who do not are invariably information providers and advisors to boards. It is noted that risk and strategy are intertwined, and as boards are responsible for strategy, they are by default responsible for risk. The top reasons why boards may not be adequately informed on organizational risk include gaps in the board’s skills, risk blindness, poor communication to the board and the complexity of the business environment the organization operates in. The website also notes that boards should not be involved in the daily detail of risk management, but they have an extremely important role to set the risk agenda, embody risk assessment with the organization’s culture and oversee implementation of actions to reduce risk.
Questions:
1 Can management accountants/managers always identify and assess all risks a business may face?
2 How can management accountants help boards better understand the risks an organization may face?