The risk-based management control system: a stakeholders' perspective to design management control systems

Due to the proliferation of international crises and the increasing pace of changes in the global economic and financial systems, companies are facing diverse and challenging risks. Hence, the need to consider the notion of risk in management control is legitimate and more specifically, the risks that stakeholders present regarding strategic objectives. Integrating this risk into management control systems will allow a better implementation of the strategy, since the latter is intended to be carried out by the organisation in an environment, in interaction with stakeholders who can affect or be affected by this strategy. This study develops a conceptual model of management control considering the risk of stakeholders. The main contribution of this work is that strategic responds and performance measurement will be based on couples of key performance indicators/key risk indicators to accurately analyse the performance, as well as the understanding of the various opportunities and threats with a view to continuous development.