CIMA emphasises importance of debate in response to consultation on Risk Management

08 August 2005

The Chartered Institute of Management Accountants (CIMA) has welcomed the recent discussion paper by the Federation of European Accountants (FEE) on Risk Management and Internal Control in the EU as a valuable contribution to debate in the area. In its recent response to the FEE consultation paper, CIMA emphasised its support for FEE’s conclusions, but also suggested:

Effective risk management is not simply about preventing adverse events and exercising control, but seizing opportunities to add value. It is therefore essential to gain a shared understanding of what effective risk management actually is, since views can vary according to the context and from country to country.
That in view of the differences between the US and European approaches to public reports and the need to review how the Sarbanes-Oxley Act works in practice, the debate on the effectiveness of the internal control system needs to remain open
There is real scope for discussion of the roles and responsibilities of key players in risk management and internal control, together with the crucial role played by the professional accountant in business within risk management and internal control.

A copy of FEE’s discussion paper is available at http://www.fee.be/.

For interviews, photographs and further information please contact:

Lynda Hardy Maskell, CIMA
020 8849 2347
lynda.hardymaskell@cimaglobal.com

Notes to editors

1. CIMA (the Chartered Institute of Management Accountants) is a leading professional body that offers an internationally recognised qualification in management accountancy, focussing on accounting in business. It is the fastest growing UK based membership body, in terms of members, in both the UK and worldwide and is the voice of over 150,000 members and students in 156 countries. CIMA is responsible for the education and training of management accountants who work in industry, commerce and not-for-profit and has more members in the public sector than any other UK based body. CIMA prides itself on the commercial relevance of its syllabus, which is in tune with the activities of high performance organisations, and evolves continually reflecting the latest developments in global business. It is committed to upholding the highest ethical and professional standards of members and students, and to maintaining public confidence in management accountancy. For more information about CIMA, please visit www.cimaglobal.com

Chartered Institute of Management Accountants