Organisations today are operating in an ever changing and more risky external business environment. To survive and grow in this environment it is now more important than ever that the information needs o the organisation are shaped by its goals and objectives and driven by its strategy choices. These strategy choices determine the processes and activities necessary to achieve the organisational objectives and goals. The resulting organisational outcomes contribute to the generation of owner wealth and increased organisational value and, in doing so, recognise the value adding potential of significant organisational relationships such as those with suppliers and customers. From a management accountant’s perspective, these strategy choices define the design, function and operation of the organisation’s management control systems and its underpinning performance management system.

The focus of this book is on accounting for an organisation’s external business environment and the associated risk implications for decision making and performance management. It is about accounting for operating strategies, processes and activities and the incorporation of risk into these strategic decisions and the management of performance. The tools, techniques and frameworks available to the management accountant are drawn from those used in traditional and contemporary management accounting, as well as those developed through a strategy-based value chain lens and a discussion on how strategy-based accounting might be achieved.

1. Introduction – management accounting and its external environments
2. Strategy-based accounting and risk management
3. Strategic decision-making, resourcing and risk management
4. Organisational human resources value, growth and strategic risk management
5. Structural choices, transfer pricing and risk management
6. Customer value, profitability and risk management
7. Supplier value, risk and inventory management
8. Quality, value and risk
9. The natural environment and managing externalities and the organisational footprint
10. Balancing strategic choice: performance management, risk and organisational value
11. Organisational value: a risk enhanced view of financial value

Appendix: Activity based costing, control and risk management