Necessary developments of management control

The necessary developments of management control in companies towards the increase of plans’ execution certainty are imperative for securing the undisturbed, continuous increase of the economic profits. These developments should enable conscious and effective management the impact of risk on the functioning of companies. Disregarding risk in management control may lead to faulty decision-taking concerning running the business, contracts, loss of market opportunities and the lack of hedging the significant risks for the operational activity. The main task of management control is to prepare decisions that may be at risk in the highly volatile business environment. Decision-makers in each company require to obtain timely and reliable information. Managers operate in conditions of ignorance due to risk, which should be managed also by adjusting management control by a risk component. Obtaining correct data about risk and its impact on the economic results becomes the foundation for making effective decisions. However, there is paid insufficient attention in management control practice to issues of risk analysis, risk simulation, planning security or risk adjusted performance measurement. It requires the development of competences supporting the implementation of elements of risk management into everyday management operations.