“Early Warnings”: incremento nella capacità di risposta o perdita di rilevanza?

Bertoni Michele, De Rosa Bruno, Rossi Paola

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

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.