Risk-based management accounting in insurance companies in terms of internal control

Task. The article is devoted to the issues of risk-oriented internal control, as well as risk-oriented management accounting in an insurance company. The formation of a business process in the context of control points of the occurrence of risks, and the assessment of these risks is a subject for practical application in insurance, which was the reason for researching this area. Model. Determine the focus of business processes, resources, points of entry and exit of the business process in order to identify risks. Apply techniques and elements of risk-based management accounting and internal control in an insurance company using one of the types of business process as an example. Combine these risk management systems into a single mechanism. Conclusions. By applying and combining into a single mechanism the techniques, principles, elements of risk-oriented internal control, as well as risk-oriented management accounting in an insurance company, while defining control points for the occurrence of risks in business processes, it is possible to identify real risks in the insurance business in a timely manner eliminating or mitigating their impact on the financial results of insurance companies. Practical importance. Studies have shown that the formation of a mechanism for business processes in an insurance company, while relying on the main elements of internal control and management accounting, while using the techniques of risk-based accounting, will allow an organization to competently manage its risks, identify real risks when controlling any business process, focus on control points, inputs and outputs in the business process, resources, make timely management decisions to level threats in the insurance business. Originality. A mechanism for the formation of business processes is presented, which includes elements and techniques of risk-oriented accounting, as well as internal control. The assessment of risks in the insurance company on the business process «Conclusion of contracts and underwriting in the insurance of property of legal entities». Described by drivers of risk assessment, the main drivers of loss.

risks, internal control, insurance companies, business process, ISA, management accounting