Comprehensive Opportunity and Lost Opportunity Control Model and Enterprise Risk Management

Abstract

The purpose of this paper is to build a comprehensive opportunity and lost opportunity control model through which contemporary management accounting can act in alignment with enterprise risk management, as well as to examine its managerial and socio-economic functions in relation to risk management in the context of uncertainty in a global finance-oriented society. For this purpose, the paper demonstrates the structure and characteristics of this model specifically in contrast with traditional and other control models that have been previously addressed for controlling the changes and diversity of business environments. We can recognize from this demonstration that the accounting control system based on opportunity and lost opportunity control model has shifted its fundamental focus from feedback systems, profitability, and managerial control to feed-forward, value creation, and enterprise governance. The paper also refers to the socio-economic function that the model fulfills in the disclosure and transparency of the risk management process. These results lead to the conclusion that contemporary management accounting expands its short-term efficiency and company-centered effectiveness into long-term efficiency and social effectiveness.

Managing Ethical Risks of Artificial Intelligence in Business Applications

“…Business leaders who are most effective, assess opportunities and their associated risks using ERM frameworks [17,61]. These frameworks use the risk management cycle to maximize business and stakeholder value by first identifying risks, second, assessing the probability of the occurrence of a positive or negative risk event, and third, acting to mitigate it.…”