CONTRIBUTION OF THE CONTROL ENVIRONMENT TOSUCCESSFUL CHANGE MANAGEMENT

Abstract

The aim of this paper was to demonstrate, through an overview of numerous studies conductedworldwide, that there is a positive correlation between the control environment and the success of changemanagement. By synthesizing the findings of a large number of authors and studies, it was shown that astrong control environment has a significant impact on the quality of internal control systems, as well as onthe organization's approach to risk management, including those related to change. This contributiondepends on the type of organizational culture. If the culture is flexible, adaptable, based on opencommunication, teamwork, learning from mistakes, continuous improvement, and adequate leadership,organizational cultures can facilitate and encourage acceptance of change; otherwise, they can be asignificant obstacle to successful change management. The conclusion of this paper is that the controlenvironment represents an extremely important and specific set of resources that can greatly assistorganizations in their efforts to quickly adapt to changes in the internal and external environment andachieve their goals. Relying on the control environment is in line with the approach of 'effectuation,' whichassumes that changes should not be viewed as risks to be avoided at all costs, but as opportunities that canbe utilized based on existing resources, such as the control environment with all its elements. By creating aculture that values risk management, organizations can better manage change and protect their employees,customers, and other stakeholders.