RISK MANAGEMENT WITH MANAGEMENT CONTROL SYSTEMS: A PRAGMATIC CONSTRUCTIVIST PERSPECTIVE

Rainer Lueg, Magdalena Knapik
2016 Corporate Ownership and Control  
This paper addresses the issue that calculative practices build on socially constructed facts that have both subjective and objective components. Using risk management as an example, we take a pragmatic-constructivist stance to explore how such a tool might be integrated in actor-based Management Control Systems. We propose a conceptual framework and a research agenda that accounts for actorship (L. Nørreklit, 2013) beyond numerical facts. This paper is conceptual and draws on secondary
more » ... re. Our framework highlights the nonlinear, iterative nature of integrating calculative practices that specifically require complex reflection concerning the [1] validation if possibilities are factual (combining subjective and numerical data), [2] the elimination of illusions and sur-realities through constructive conflict/dialectical management, and [3] the co-construction of organization-wide topoi (causality and pertinent accounting practices). Our research furthers practice research on calculative practices through the development of a prescriptive rather than descriptive framework. It also offers propositions that future case study researchers can use.
doi:10.22495/cocv13i3p6 fatcat:266xws3lsfhzrdhzs4pvnsnxc4