Improvement of Management Accounting in the Context of Uncertainty and Risks in the Food Retailing Sector in the Republic of Kazakhstan
Improvement of Management Accounting in the Context of Uncertainty and Risks in the Food Retailing Sector in the Republic of Kazakhstan

Summary/Abstract: The goal of this study is to develop recommendations for management accounting improvement and introduction of mechanisms to account for risk tolerance at food retailing enterprises in the Republic of Kazakhstan. The study was carried out using the analysis of statistical data on retail development in the Republic of Kazakhstan, internal regulatory documentation and business processes of the four largest food chains in Kazakhstan. The SWOT analysis was applied to assess the external and internal environment for the retail industry operation. Methodological tools for quantitative evaluation of the risk tolerance indicator were provided within the study, based on financial information from the four largest retail chains in Kazakhstan. The results of the analysis revealed that Kazakhstan retailers were operating in the context of increasing risks caused by a decrease in real household incomes and a drop in consumer demand. Despite the obvious benefits, the "risk tolerance" concept is a relatively new area in risk management and has not yet become widely used in the companies of the non-financial sector in the Republic of Kazakhstan. Application of the methodological approaches described in this article allowed the author to establish the threshold for losses and calculate the risk distribution scale in accordance with the established tolerance range for the food retailing companies in the Republic of Kazakhstan.

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