August Aquila ([email protected]), consultant to the accounting profession, says, “Risk management may soon become one of the top five issues in managing an accounting practice.”

He offers this advice:

• Every professional should be a risk manager. Having an open and trusting culture will lessen the fear of reporting errors.
• Establish the position of chief risk officer. Risk management should be discussed at every partner meeting. Partners should report on issues that worry them.
• A risk management committee should approve all new engagements.
• Each niche should have a risk management team.
• Set up a training program on risk management processes, including client acceptance, client continuation, accounts receivable, and mergers and acquisitions.
• Create a map showing potential risks, and develop remedial actions to address them.
• Measure the firm’s success in dealing with specific types of risk.

For more on this subject, also see Practical Accountant, September 2006, “The Next Major MAP Issue,” http://www.webcpa.com/article.cfm?articleid=21689&;pg=pracacc.

From Accounting Today, September 4, 2006, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004. For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=21731&;pg=acctoday.