The Role of the Independent Accountant in Effective Risk Management

The purpose of this paper is to present a perspective on the ways in which an independent accountant can contribute to the management of risk in a business organization. Business conditions and challenges have heightened the interest in risk management by many stakeholders. Independent accountants have an important role to play in providing assurance related to the quality of risk management processes which extends beyond their traditional role as the auditor of financial statements. As organizations become more and more affected by externa1 and internal risks, and increasingly dependent on integrated information systems and the expansion of nonfinancial information for monitoring risk, the value of extemal assurance services should increase. However, while presenting an opportunity to the profession, the focus on risk management also comes with a few challenges, including obtaining market permission to provide risk-based assurance services, acquiring the necessary skills and expertise, avoiding regulatory intervention and maintaining independence as the scope of services provided by independent accountants increases. Overcoming these challenges should position the accountancy profession to well serve its clients in a broad array of risk-related services.