A Multidisciplinary Approach To Risk Management For Accounting Firms
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Abstract
This paper develops an integrated risk management decision framework that provides insights into the many factors that are involved in controlling and managing risk for accounting firms. Borrowing from the areas of insurance economics, crime and punishment, accounting, and organization theory, factors are identified that affect the demand for risk reduction. The interaction and application of three different components of risk reduction (market insurance, self-insurance, and self-protection) within the context of risk reduction decision-making are examined.
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