Presentation at the IMA Annual Conference & Expo

1. RM/IC – It’s What We Do

2. #IMA14ACE
Who Are We?
Steve McNally
 Finance Director/ Controller,
Campbell Soup
 Member, IMA Global Board
of Directors
 Member, COSO ICIF Refresh
Project Advisory Council
Vincent Tophoff
 Senior Technical Manager
IFAC
 Formerly Partner of INTE-Q
Integration Management
 Senior Lecturer at the Vrije
University in Amsterdam
 Participates in COSO, ISO
31000, and OECD
Governance Committees
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3. Today’s Learning Objectives

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Today’s Learning Objectives
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Provide inspiration and practical insight on leveraging risk
management as a benefit, not a burden, to our work
Show that:
 Our professionalism, as management accountants, is based on
using our core competences
 Good risk management is good management accounting, not
compliance, as risk affects our job and our objectives
 Risk management becomes virtually invisible when fully
embedded in our core management accounting practices, it is
implicit in everything we do!

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Today’s Agenda
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 Core Competencies
 From Bolt-On to Built-In
 Case Study Coal Boilers & Sustainability
o Part I: Strategic Decision-Making
o Part II: Implementation, Monitoring & Learning
 Recap & Call to Action

6. Core Competencies

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The Management Accountant
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 Management accountants:
o Enable sound decision-making & objective-setting
o Analyze & communicate operating results
o Evaluate & drive business performance
 They work inside all types of organizations
 They have a variety of job titles
 In short, they are business partners & strategic
advisors who focus on creating stakeholder value

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Our Key Competencies *
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The
Management
Accountant
Investment
Decisions
Planning,
Budgeting &
Forecasting
Decision
Analysis
Cost
Management
Corporate
Finance
Performance
Management
External
Financial
Reporting
Decisions
Financial
Statement
Analysis
* - CMA exam content

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Our Key Competencies *
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* - CMA exam content

10. From Bolt-On to Built-In

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Effective Risk Management…
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 In our management accounting activities we face
many uncertainties, both opportunities and threats,
that may affect achievement of our objectives
 Risk management provides a systematic way to
manage such uncertainties/risk more effectively…
 … By assisting us in making informed decisions
about what we want to achieve

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…To Achieve Our Objectives!
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 Facilitates the achievement of our objectives
 While complying with legal, regulatory & societal
expectations
 Enables us to better respond and adapt to surprises,
disruptions, and changes in the environment
How?
 From bolt-on to built-in: fully integrating risk management
into our daily management accounting activities

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From Bolt-on to Built-in
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Managing Risk as an Integral Part of Managing an Organization

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For that reason we have to…
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 Identify, assess, treat, report, monitor, and review risk
 Always in relation to the objectives we want to achieve!
 While giving consideration
to the ever changing
context
 And also…

15. #IMA14ACE
1)…Manage Risk from the Start
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 Objective setting is activity that involves most risk
 So, don’t wait until after we have established our objectives
 But, instead, let’s make risk management an integral part of
our decision making process to establish those objectives!

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2)…Communicate and Consult!
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3)…Make Informed Decisions
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High quality information is crucial to good decision making as
it reduces uncertainty
 Ensure access to timely, relevant & reliable data
 Arrange for expertise to analyze those data and turn them
into useful information
 Professional judgment must always
be professional

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4)…Remain Sufficiently Agile
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 We need to build both resilience and agility into
all our activities
 Being able to adequately respond to changes in
circumstances
and
 Deal with the consequences of unforeseen events

19. Case Study & Group Discussions

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Case Study
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 Objective: Demonstrate that good management
accounting is good risk management!
 Case Study Scenario: Coal Boilers &
Sustainability
 Phases of Case Study Discussion:
• Part I: Strategic Decision-Making
• Part II: Implementation, Monitoring & Learning

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Case Study Expectations
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 Review scenario
 Consider provided questions
 In small groups, discuss scenario & questions:
o Identify additional data or action requirements
o Formulate recommendations as appropriate
 Share outcome of discussions with full group
 Speakers to share final thoughts

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Case Study Part I: Decision-Making
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Case Study Part II: Implementation,
Monitoring & Learning
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Decision-Making Wheel
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25. Recap & Call To Action

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Recap
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 We, as management accountants, are business
partners and strategic advisors
 We benefit from a tool box of core competencies
 We know that good risk management is good
management accounting because…
 Good risk management enables us to achieve
our objectives and deliver stakeholder value

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Call To Action
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 Fully integrate risk management into your daily
management accounting activities:
 Always consider risk in relation to the objectives you want to
achieve
 Indeed, manage risk from the start, even in the process of
establishing those objectives
 Communicate and Consult
 Make informed decisions
 Remain sufficiently agile
 Learn & reapply as you go

28. 10 Paragon Drive, Suite 1
Montvale, New Jersey
07645-1760
U.S.A.
(800) 638-4427
+1 (201) 573-9000
www.imanet.org
10 Paragon Drive, Suite 1
Montvale, New Jersey
07645-1760
U.S.A.
(800) 638-4427
+1 (201) 573-9000
www.imanet.org

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Speaker Time Keeping (75 Minutes)
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 Distribute our articles and our recent blog
beforehand (electronically and in print)
 Intro, Learning Objectives, Agenda (10 Minutes)
 Core Competencies (5-10 Minutes)
 From Bolt-On to Built-In (5-10 Minutes)
 Case Study (30-45 Minutes)
 Recap & Call to Action (5-10 Minutes)