Strategic Management Accounting and Feed-Forward Management: With Reference to the Unified Management of Profit Opportunity and Risk

  • Akira Nishimura


This chapter reexamines strategic management accounting in relation to profit opportunity and risk from the viewpoint of feed-forward management, as few studies to date have discussed the relations between management accounting and the unified management of profit opportunity and risk. Many studies have been conducted that emphasize nonfinancial information and feedback organizational management in an attempt to make traditional management accounting relevant to practical strategic needs. As long as strategies are future-oriented and implemented under strong uncertainty and in complex business environments, the information and control methods used must also be preventive and proactive. For this purpose, this chapter first examines the value of information and the effects of feed-forward information on strategic organizational management, after the meaning and role of nonfinancial information and feedback control in strategic management are thoroughly reexamined. Second, with reference to the above point, the chapter examines management accounting in the unified management of profit opportunity and risk from a feed-forward perspective. Lastly, this chapter highlights the relations between global innovation and proactive variance analysis and notices the further direction of management accounting toward more proactive and preventive planning (decision-making) and control (performance evaluation).


Nonfinancial information Feed-forward management Profit opportunity and risk Comprehensive risk management Strategic innovation 


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Akira Nishimura
    • 1
  1. 1.Beppu UniversityBeppu-cityJapan

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