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Integrating Risk Management into Management Accounting Control: A Contingency-Based Framework for Decision Quality and Organizational Resilience

Jing Sun
Academic Journal of Management Science and Engineering, (2026), Vol.1, No.7, pp.85-95
Published: October 27, 2026
DOI: 10.62051/ajmse.v1n7.09
PDF: Download Full Text PDF
Abstract

Management accounting systems are expected to translate strategy into budgets, performance measures, and resource-allocation decisions, yet risk management is often organized as a parallel compliance activity. This separation can produce financially precise plans that conceal uncertain assumptions, performance targets that reward excessive exposure, and risk reports that arrive too late to influence managerial choices. This conceptual paper examines how risk management can be embedded in management accounting control without reducing either function to a formal reporting exercise. Through a structured synthesis of management control, enterprise risk management, contingency, and control-package literature, the paper develops a framework built around four connected mechanisms: risk-informed planning and budgeting, risk-sensitive performance measurement, coordinated controls across the decision cycle, and learning-oriented information and escalation processes. The framework treats risk as an attribute of decisions and accountability rather than as a residual category confined to a corporate risk register. It further explains how governance roles, organizational culture, and contextual conditions shape the appropriate intensity and combination of controls. The analysis contributes an integrated vocabulary for connecting accounting information with risk appetite, decision rights, and organizational learning. For practitioners, it offers design principles for building a proportionate control architecture that supports both prudent constraint and informed risk-taking. Because the framework is conceptual, its propositions require empirical examination across industries, ownership forms, and institutional settings.

Keywords: Management Accounting, Risk Management, Management Control Systems, Enterprise Risk Management, Budgeting, Organizational Resilience
APA Citation: Jing Sun (2026). Integrating Risk Management into Management Accounting Control: A Contingency-Based Framework for Decision Quality and Organizational Resilience. Academic Journal of Management Science and Engineering, 1(7), 85-95. https://doi.org/10.62051/ajmse.v1n7.09

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