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Robert Anthony wrote in the foreword to the ninth edition of Management Control
Systems (Anthony and Govindarajan, 1998):
The management control framework that students learned decades ago is still
generally valid today. “Lifelong learning” is important, but it consists of fitting
detailed improvements into the overall framework, which is a lot easier than
learning a new framework from scratch. Admittedly, a new framework will be
developed some day; we developed ours in the 1950s. Faculty must be aware of
this possibility, and adopt it if it comes, but until then they need not worry that
the framework they now teach will shortly be irrelevant. (xv)
Though the world gets smaller and new changes occurs continuously in all areas of
life, corporations, organizations, learning process, technology, globalization and
human behaviors, different theories carefully and thoughtfully created by academics
are still very much relevant in our today’s high pace life. This is what this reader will
be looking at, how risk and control are related and perceived from different
perspectives of different theorists, from different disciplines, regardless the time the
theory is made. There is no such specific structured applied in the contents
everything is inter-related and none of them are mutually exclusive and everything is
affecting one another.
It also seems that there is enormous scope for much closer links between the
management control and the performance management and measurement, mostly
based on links at accounting and finance, marketing, manufacturing, intellectual
capital and knowledge management, organizational behavior and psychology. Due
to many fraud ...