Management accounting when an organization is facing default

Crises around the world have attracted the attention of theorists and practitioners from a wide range of disciplines. This book focuses on the management accounting procedure adopted to deal with uncontrollable dangerous events, i.e. issues. A model is drawn for dealing with issues through a financial pressure-based warning system, enabling its predictive ability on the best instruments available to the management accounting profession. Issues induced by several external or internal sources of information and manifested through compelling financial pressure are unpredictable issues, which surprise the organization during its lifetime, unless an effective issues management process is enacted. This text describes the main features of a financial pressure issues management process, aimed at contrasting financial distress and incumbent default. Coping with uncontrollable events through proactive management, on the basis of a planned organization, while looking at operative and strategic solutions, eases the probability of an effective response to unfortunate events and increases the capacity to control and mitigate the costs of the crisis, and, in the best-case scenario, even circumvents the eventuality of default.