Accounting Accounts in Risk Management

In risk management, having clear and traceable financial records is essential. Accounting accounts allow organizations to organize and classify transactions related to events such as losses and recoveries, adding structure and control to the overall process.

Integrating these accounts into your system is not just an accounting function—it's an operational necessity to maintain visibility over the financial impact of risk. This functionality is especially useful for organizations that need to connect event data with regulatory compliance and decision-making processes.

What is an accounting account, and what is it used for?

An accounting account is a structured record within the system used to classify financial transactions related to your risk or compliance processes. Its main purpose is to bring order and traceability to accounting entries, facilitate the calculation of capital requirements, and ensure that each operation aligns with applicable regulations.

These accounts are linked to what is known as an “accounting item,” a key feature that associates each account with a specific component within the system. This association determines what types of transactions can be recorded and how they should be treated from an accounting perspective.

What benefits and advantages does it offer your organization?

Integrating accounting accounts into your management system significantly improves financial visibility across operations. It centralizes accounting information, automates tasks that were previously manual, and reduces the likelihood of human error. It also simplifies audits, speeds up reporting, and strengthens your ability to respond to regulatory changes or unforeseen events.

From a strategic standpoint, having a clearly defined accounting structure improves the accuracy of impact measurement, enables stricter regulatory compliance, and contributes directly to the financial sustainability of the organization.

What problems does it solve?

Many organizations face challenges when trying to connect accounting records with their risk processes. This often results in disorganization, errors in capital calculations, lack of traceability, or even regulatory non-compliance. The accounting accounts module was designed to address these issues, providing an integrated and efficient solution within the system.

How does it work within the system?

The process begins by accessing the parameterization module, where you'll find the option for "Accounting Accounts". From there, you can create a new account by entering its name, account number, and selecting an accounting item, which comes with a brief description and associated component. This selection is critical, as it defines how transactions linked to that account will be handled.

One of the most useful features is the ability to bulk upload data. Through the "Import" option, you can upload multiple new accounts or update existing records using a CSV template. Just fill in the required fields—such as account name, number, and BI category—upload the file, map the data, and complete the process. The system will provide a load history and notify you of any errors for quick resolution.

You can also update existing accounts using a different template that includes a ReferenCode, which helps identify each account unambiguously within the system.

Once the accounts are uploaded or updated, they can be directly linked to loss or recovery events. This direct integration between events and accounting not only improves traceability, but also allows for a more accurate measurement of the financial impact of each event.

Practical use cases

Suppose your organization regularly handles operational loss events. With the accounting accounts module, you can automatically link each loss to a specific account, making reporting, auditing, and impact analysis more efficient. Another common scenario is updating internal accounting policies—rather than modifying records one by one, bulk upload allows you to make changes in just a few minutes.

Are you already using accounting accounts?

Discover how to create your accounting account in our modules in the Help Center.
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