Comprehensive Opportunity and Lost Opportunity Control Model and Enterprise Risk Management

  •  Akira Nishimura    


The purpose of this paper is to build a comprehensive opportunity and lost opportunity control model throughwhich contemporary management accounting can act in alignment with enterprise risk management, as well as toexamine its managerial and socio-economic functions in relation to risk management in the context ofuncertainty in a global finance–oriented society. For this purpose, the paper demonstrates the structure andcharacteristics of this model specifically in contrast with traditional and other control models that have beenpreviously addressed for controlling the changes and diversity of business environments. We can recognize fromthis demonstration that the accounting control system based on opportunity and lost opportunity control modelhas shifted its fundamental focus from feedback systems, profitability, and managerial control to feed-forward,value creation, and enterprise governance. The paper also refers to the socio-economic function that the modelfulfills in the disclosure and transparency of the risk management process. These results lead to the conclusionthat contemporary management accounting expands its short-term efficiency and company-centeredeffectiveness into long-term efficiency and social effectiveness.

This work is licensed under a Creative Commons Attribution 4.0 License.