Discuss Emerging Issues in Accounting and Finance

This module has been organised into three sections, each in turn introducing sustainability accounting, accounting and financial management in the public sector and issues arising from the recent financial crisis. Each of these themes is connected by a common thread, namely risk to the organisation and its stakeholders.
According to the Chartered Institute of Management Accountants (CIMA, 2006: p.2):
Risk has traditionally been defined in terms of the possibility of danger, loss, injury or other adverse consequences … Risk management is the process by which organisations methodically address the risks attaching to their activities in pursuit of organisational objectives and across the portfolio of all their activities. Effective risk management involves: risk assessment; risk evaluation; risk treatment; and risk reporting[ CIMA (2006) Risk and Management Accounting: Best Practice Guidelines for Enterprise-wide Internal Control Procedures. Research Executive Summaries Series. Vol. 2. No. 11. May. Available at: http://www.cimaglobal.com/Documents/ImportedDocuments/tech_ressum_risk_and_management_accounting_best_practice_guidelines_for_enterprise-wide_internal_control_procedures_2006.pdf ].
Task: Using the resources from the reading list, together with other academic readings that you have independently researched, you are required to write an essay that addresses the following question:
What are the main risks associated with the management of public and private sector organisations? To what extent do you believe that these risks have evolved and changed during the past decade? What are the barriers that frustrate accounting for and financial management of risk, and what are your recommendations for resolving these tensions?
When preparing your essay, you must first consider the meaning of the terms used in the brief. What do you understand by risk and why appropriate disclosure and management is important to a just society and a stable economy?. These concepts allow for subjectivity, so you will need to complement your reading about these terms with your own reasoning and values. Moreover, you may be able to draw on what you have learned in other modules when forming your opinion. Once you have a fix on these meanings, you will be in a position to relate them to one another, demonstrate why they matter, and to begin to plan your essay.
The second sentence can be approached in a number of ways. On one hand, you will need a familiarity with those social and economic developments that have shaped our perception of risk and an understanding of how accounting and finance have evolved to contribute towards their management. This section demand a critical treatment because students will be required to evaluate identified risks in terms of their significance and potential impact on organisations and their stakeholders.
In the final part, you are required to pinpoint the vulnerabilities in the present system of financial accounting and reporting, and evaluate the conflicting motivations and other factors that work against effective risk management. You must finish with some relevant and tangible recommendations designed to address the weak points that you have identified, and finish with a strong conclusion which demonstrates how and to what extent you have been able to fulfil the requirements of the question.