Early Warnings: An increase in responsiveness or loss of relevance?

Author/s Michele Bertoni, Bruno De Rosa, Paola Rossi
Publishing Year 2021 Issue 2021/1
Language Italian Pages 20 P. 175-194 File size 370 KB
DOI 10.3280/MACO2021-001009
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The new Italian Insolvency and Crisis Code requires companies to implement adequate tools to promptly detect a state of crisis and to undertake appropriate initiatives in a timely manner. This study provides a conceptual model for integrating an early warnings system into management control systems’ frameworks, which a new law requires. By undertaking a literature review and analyzing the package of controls that the new regulatory guidelines impose, we identify an early warning system as a boundary one in terms of the theoretical framework that Simons (1995) proposed. We conclude that an early warning internal control system should complement traditional managerial logics.

Keywords: Early warnings, management control systems, internal control, Italian Insolvency and Crisis Code.

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Michele Bertoni, Bruno De Rosa, Paola Rossi, "Early Warnings": incremento nella capacità di risposta o perdita di rilevanza? in "MANAGEMENT CONTROL" 1/2021, pp 175-194, DOI: 10.3280/MACO2021-001009