RISK IN FINANCE FROM THE PERSPECTIVE OF AN ACCOUNTING THEORY

Risk has traditionally been defined in terms of the possibility of injury, danger, loss or other adverse consequences. Risk in finance and accounting is considered in terms of valuation, distribution of recognised gain, cost-volume-profit analysis, cash flow, capital assets pricing models and hedging techniques, etc. Paper is oriented to analysis of risk management in organisations and in particular how risk management impacted on both accounting and internal controls followed by comprehensive description and the statistical analysis of the research. The purpose of the paper is to understand the relationship between risk and finance. This involved consideration of how risk was enacted in finance and how managerial perceptions of risk influenced the process and content of accounting.