Accountants as Strategic Partners and a Risk Culture Open to Challenges

• In Event: Management Accounting

Abstract

A risk management culture that is open to challenges is essential for successful risk taking. Accountants who partner with managers in strategic decisions are found to be an important factor in promoting a risk challenge culture. A 2 (accountants as strategic partners: yes or no) x 2 (quantitative skepticism: low or high) factorial analysis of covariance using information system support as the covariate also revealed that a skeptical attitude towards risk modeling is negatively associated with a risk challenge culture. Furthermore, a significant interaction between the strategic role of accountants and skepticism suggests that in organizations where managers are more skeptical towards risk modeling, accountants as strategic partners have a positive influence on a risk challenge culture. This influence is not significant in organizations characterized by low quantitative skepticism. We collected responses from experienced management accountants using two original survey scales for measuring risk management culture and quantitative skepticism. The significant empirical results propose several implications for risk management researchers, practitioners and educators.

Authors

• Regina Bento, University of Baltimore

• Lasse Mertins, Johns Hopkins University

• Lourdes White, University of Baltimore