Risk associated with research and development projects and its consequences for the financial accounting system
Risk associated with research and development projects and its consequences for the financial accounting system

Summary/Abstract: Risk is inherent in every activity taken by an enterprise. Research and development activity, often implemented through projects, is by nature subject to greater risk than other areas – the goal and scope of such activity is more difficult to determine at the time of the project’s beginning. Risk management in research and development activity (projects) requires the identification of risk, its measurement and evaluation and the choice of ways to impact on chosen risks, and then the preparation and implementation of a risk management plan. Measurement and evaluation of risk is an extremely important step, as it determines the choice of risk management methods and entail certain financial resources which may be reflected in the creation of reserves for the chosen risk management methods. The aim of this article is to identify risk areas in research and development projects and show the consequences of the chosen risk management strategies for the financial accounting system.

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