Risk-oriented strategic management accounting in Ukraine

    Olena Fomina Affiliation
    ; Svitlana Semenova   Affiliation
    ; Olena Moshkovska Affiliation
    ; Volodymyr Yevdoshchak Affiliation
    ; Yulia Manachynska Affiliation


In order to survive, Ukrainian enterprises in the conditions of war must look for new ways of effective management, a higher degree of integration of risk management and strategic management. Management accounting helps make risk-based decisions to achieve strategic goals. The expert survey method made it possible to identify the most significant risks for enterprises in Ukraine in war conditions: the risk of increased costs, reduced income, the risk of inability to repay obligations, loss of customers, non-payment of receivables, loss of asset value, risk of unprofitability, reduction of business and bankruptcy. The strategic management accounting risk matrix shows the probability and potential impact of each risk on accounting data. A strategic plan and measurement of the effectiveness of risk-oriented strategic management accounting was developed. It shows the relationship of accounting objects, the financial statements of the enterprise, with analytical indicators for assessing the financial condition and the impact of risks under pessimistic, optimistic and optimal scenarios. In practice, it helps to identify risks, determine their impact on enterprise performance indicators, model indicators, assess their compliance with strategic goals, adapt in a timely manner, and make effective management decisions.

Keyword : accounting, management, risk, management accounting, risk-management, strategy, strategic management accounting, risk-oriented strategic management accounting, prognostication

How to Cite
Fomina, O., Semenova, S., Moshkovska, O., Yevdoshchak, V., & Manachynska, Y. (2023). Risk-oriented strategic management accounting in Ukraine. Business: Theory and Practice, 24(2), 533–543.
Published in Issue
Nov 24, 2023
Abstract Views
PDF Downloads
Creative Commons License

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


Abbasi, B., & Mohammadi, M. H. K. (2016). Effect of strategic management accounting techniques on market share changes in firms in Tehran Stock Exchange market. Problems and Perspectives in Management, 14(3-si), 325–331.

Afifa, M. A., & Saleh, S. (2021). Management accounting systems effectiveness, perceived environmental uncertainty and enterprise risk management: Evidence from Jordan. Journal of Accounting & Organizational Change, 17(5), 704–727.

Ambika, R., & Krishnamoorthy, K. (2019). Determinant of socio-economic sustainable development. Shanlax International Journal of Arts, Science and Humanities, 6(3), 35–36.

American Academy of Actuaries Risk Classification Work Group. (2011). On risk classification. American Academy of actuaries. A public policy monograph.

Auditores Internos. (2021). Risk in Focus 2021: Hot topics for internal auditors. Institute of Internal Auditors of Spain.

Chartered Institute of Management Accountants. (2022). Management accounting in your business. CIMA.

Chorafas, D. N. (2007). Strategic business planning for accountants: Methods, tools and case studies. Elsevier.

Conceptual Framework for Financial Reporting. (2019).

COSO ERM. (2018). Enterprise Risk Management. Applying enterprise risk management to environmental, social and governance-related risks. WBCSD.

Danchenko, O. B., & Zanora, V. O. (2019). Project management: Risk management and change in management decision-making: A monograph. Cherkasy.

Deloitte & Touche. (2020). Risk management in conditions of high uncertainty. Deloitte & Touche USC LLC.

Drobyazko, S., Shapovalova, A., Bielova, O., Nazarenko, O., & Yunatskyi, M. (2019). Evaluation of effectiveness of responsibility centers in the management accounting system. Academy of Accounting and Financial Studies Journal, 23(6), 1–6.

Fedulova, I., & Piatnytska, G. (2020). Signification of risk management, crisis management and compliance in the financial safety management of an enterprise. Economics and State, 8, 26–34.

Fomina, O. V., & Goncharenko, O. M. (2015). Risk assessment of the enterprise in the accounting system. Economic Journal – XXI, 3–4, 67–70.

Fomina, O., Moshkovska, O., Luchyk, S., Manachynska, Y., & Kuzub, M. (2020). Managing the agricultural enterprises’ valuation: Actuarial approach. Problems and Perspectives in Management, 18(1), 289–301.

Fomina, O., Zadniprovsky, O., Korol, S., & Romashko, O. (2022). Professional judgement in accounting: Contents and conditions of application. Business: Theory and Practice, 23(1), 26–38.

Hadid, W., & Al-Sayed, M. (2021). Management accountants and strategic management accounting: The role of organizational culture and information systems. Management Accounting Research, 50, 100725.

Hnatenko, I., Shtuler, I., Romashko, O., Rubezhanska, V., Bulkot, G., & Bugay, N. (2021). The innovative potential of agro-processing enterprises in the context of resource conservation and crisis management. Journal of Hygienic Engineering and Design, 35, 61–66.

International organization for Standardization. (n.d.-a). ISO 31000:2018 Risk management – guidelines.

International organization for Standardization. (n.d.-b). ISO Guide 73:2009 Risk management – vocabulary.

Karpenko, O., Palyvoda, O., & Bondarenko, O. (2018). Simulation modeling of strategic development of transport and logistics clusters in Ukraine. Baltic Journal of Economic Studies, 4(2), 93–99.

Korol, S. Y., Nykyforuk, O. I., Pelekh, U. V., Barabash, N. S., & Romashko, O. M. (2022). Transfer pricing documentation: Globalization and regional optimization. Universal Journal of Accounting and Finance, 10(1), 219–230.

Kose, Т., & Agdeniz, S. (2019). The role of management accounting in risk management. Muhasebe ve Finansman Dergisi, 509–526.

Kostyuchenko, V., Kamil, A., Petrov, P., Kolot, L., & Mykolaichuk, I. (2021). Controlling’s accounting support at trading companies in the context of sustainable development. Academy of Accounting and Financial Studies Journal, 25(4).

Kovova, I., Malyshkin, O., Vicen, V., Shulyarenko, S., Semenova, S., & Shpyrko, O. (2018). Value added tax: Effectiveness and legal regulation in Ukraine and the European Union. Economic Annals-ХХI, 171(5–6), 4–14.

Kovova, I. S., & Semenova, S. M. (2015). Accounting and analytical support for costs control of small businesses under euro integration. Actual Problems of Economics, 173(11), 353–358.

Kuzub, М., Zadniprovskyi, О., Romashko, О., Avhustova, О., & Shushakova, І. (2022). Specifics of the implementation of accounting standards. Scientific Horizons. Polissia National University, 25(1), 96–103.

Kurak, A. I. (2019). Accounting and control of future expenses and payments in enterprise risk management [Abstract of the dissertation of the candidate of economic sciences; Lviv University of Trade and Economics Lviv].

Ma, L., Chen, X., Zhou, J., & Aldieri, L. (2022). Strategic management accounting in small and medium-sized enterprises in emerging countries and markets: A Case study from China. Economies, 10(4), 74.

Martinis, M., & Houghton, K. (2019). The business risk audit approach and audit production efficiency. Abacus (A Journal of Accounting, Finance and Business Studies), 55(4), 734–782.

Mazaraki, A., Boiko, M., Bosovska, M., Okhrimenko, A., & Antoniuk, K. (2022). The rating of Ukraine’s regional tourist systems according to their investment potential. Problems and Perspectives in Management, 20(3), 43–61.

Mazaraki, A., & Fomina, O. (2016). Tools for management accounting. Economic Annals-XXI, 159(5–6), 48–51.

Ministry of Finance of Ukraine. (2023). International Financial Reporting Standards.

Ministry of Finance of Ukraine. (2003). Letter “Regarding materiality in accounting and reporting”, dated July 29, 2003 No. 304230-04108.

Nzuza Wiseman, Z. (2016). An application of a Chartered Institute of Management Accounting strategy on stock control: A case of the South African municipality. Public and Municipal Finance, 5(2), 30–39.

Ojra, J., Opute, A.P., & Alsolmi, M. M. (2021). Strategic management accounting and performance implications: A literature review and research agenda. Future Business Journal, 7, 64.

Preve, L., & Frias P. (2013, 3 June). Accounting at risk. Risk and uncertainty management. Lorenzo Preve.

Rogovyi, A., Serbov, M., Korol, S., Akhundova, A. H. G., & Suzdalieva, O. (2020). Features of business processes model building in the field of international tourism business. International Journal of Entrepreneurship, 24(1 Special Issue), 1–7.

Roupska, T. (2022, 18–19 May). The role of strategic management accounting in external strategic risk management. In 25th International Scientific Conference “Solving crisis situations in a specific environment”. Faculty of Safety Engineering UNIZA, Žilina. Zilina, Slovak Republic.

Sedevich-Fons, L. (2018). Linking strategic management accounting and quality management systems. Business Process Management Journal, 24(6), 1302–1320.

Semenova, S. (2020a). Key trends in risk management of leading EU companies according to internal auditors. Efficient Economy, 9.

Semenova, S. M. (2020b). Risk classification: A systematic approach to management. Bulletin of Khmelnytsky National University, 4(2), 42–51.

Semenova, S., Kovova, I., Shuliarenko, S., Shpyrko, O., & Bukoros, T. (2020). Estimation of transport industry’s economic sustainability as an element of strategic management: Case of Poland and Ukraine. Problems and Perspectives in Management, 18(2), 501–514.

Semenova, S. M., Shpyrko, O. M., Ziabchenkova, H. V., & Kuzmenko, O. P. (2021). Risks in the system of accounting and financial statements. Business Inform, 10, 290–297.

Shulha, O., Yanenkova, I., Kuzub, M., Muda, I., & Nazarenko, V. (2022). Banking information resource cybersecurity system modeling. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), 80.

Tarashevsky, M. M. (2020). Organizational and economic mechanism of risk management of transport enterprises. Actual Problems of Economics, 2(224), 124–140.

The Institute of Internal Auditors Ukraine. (2017). International Standards for the Professional Practice of Internal Auditing (Standards).

The Verkhovna Rada of Ukraine. (2017). The Law of Ukraine “On the basic principles of cybersecurity in Ukraine”.

Vyhivska, I. (2018). Risk management in accounting. Central Ukrainian Scientific Bulletin. Economic Sciences, 3.