INTERNAL CONTROL AND RISK MANAGEMENT IN THE MOROCCAN FAMILY BUSINESSES

This research aims to study the importance given by family business managers to internal control and how the risks associated with these companies are tackled. After a literature review on the risks affecting family businesses, the opportunities given by a formalized internal control system for family business's sustainability are highlighted. Then, results were presented based on a qualitative study of twenty family businesses focusing on the relationship "risk-control". This exploratory approach allowed us to detect the existence of obstacles in the implementation of effective internal control in Moroccan family businesses. The role of manager's culture and values in the decision-making process was emphasized. Identification of these types of obstacles will help managers adopt rational risk management, including prevention, following-up, and treatment of risks, which avoid unnecessary monitoring efforts and unplanned controls.