Integrated management systems: linking risk management and management control systems

2018 ◽  
Vol 21 (3) ◽  
pp. 215
Author(s):  
Thomas Berger ◽  
Werner Gleissner
Keyword(s):  
Risk Management ◽  
Control Systems ◽  
Integrated Management ◽  
Management Control ◽  
Management Control Systems ◽  
Management Systems ◽  
Integrated Management Systems

scholarly journals Risk management with management control systems: a pragmatic constructivist perspective

2016 ◽  
Vol 13 (3) ◽  
pp. 72-81 ◽  
Author(s):  
Rainer Lueg ◽  
Magdalena Knapik
Keyword(s):  
Risk Management ◽  
Control Systems ◽  
Numerical Data ◽  
Management Control ◽  
Management Control Systems ◽  
Practice Research ◽  
Socially Constructed ◽  
Constructive Conflict ◽  
Calculative Practices ◽  
Descriptive Framework

This paper addresses the issue that calculative practices build on socially constructed facts that have both subjective and objective components. Using risk management as an example, we take a pragmatic-constructivist stance to explore how such a tool might be integrated in actor-based Management Control Systems. We propose a conceptual framework and a research agenda that accounts for actorship (L. Nørreklit, 2013) beyond numerical facts. This paper is conceptual and draws on secondary literature. Our framework highlights the non-linear, iterative nature of integrating calculative practices that specifically require complex reflection concerning the [1] validation if possibilities are factual (combining subjective and numerical data), [2] the elimination of illusions and sur-realities through constructive conflict/dialectical management, and [3] the co-construction of organization-wide topoi (causality and pertinent accounting practices). Our research furthers practice research on calculative practices through the development of a prescriptive rather than descriptive framework. It also offers propositions that future case study researchers can use.

scholarly journals Integration of Risk Management into Management Control System from a Pragmatic Constructivist Perspective

2017 ◽  
Vol 5 (2) ◽  
pp. 38-55
Author(s):  
Magdalena Janiak
Keyword(s):  
Risk Management ◽  
Control System ◽  
Control Systems ◽  
Ground Level ◽  
Risk Identification ◽  
Management Control ◽  
Management Control Systems ◽  
Management Control System ◽  
Subjective Data ◽  
Constructivist Perspective

The idea of the paper is to inform risk management (RM) with the pragmatic constructivist (PC) perspective, and tosimultaneously integrate risk management with management control systems (MCS) bearing in mind that the key to thePC perspective is that risk information has both subjective and objective components. The paper will (1) Show how toimprove Risk Management systems using the Pragmatic Constructivist perspective. (2) Demonstrate how to use thePragmatic Constructivist perspective to integrate Risk Management into Management Control Systems. (3) Provide acase study to apply the theory by showing how Management Control System can govern Risk Management fromPragmatic Constructivist perspective. Applying the case study finds out mainly that action control in a form of two-waycommunication between actors (managers and technicians) at the process of risk identification, risk analysis, decisionmaking and monitoring, risk reality is necessary. Results controls direct attention to facts entered by actors according totheir expertise and level of influence. Personnel control enables to choose people with common values and necessarycompetencies to share knowledge for risk management. In this way actor-based reality with the actors being co-authorsof the reality can take place. The main implications of the research suggest that: 1) the successful integration of RM intoMCS requires pragmatic constructivist reality to applied by providing the contribution from all the actors so that theRM system is practical, and 2) RM should be designed to gather some subjective data from the ground level (e.g. on theprobability of an incident recurring and the potential costs of any particular type of incident) to balance the objectiveinformation gathered so that the PC approach can support RM and MCS.

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