Management Override Risk arises when owners or senior managers can bypass normal controls, accounting discipline, or approval processes. In MSME businesses, promoters often have strong control over sales, purchases, cash handling, related-party transactions, and financial reporting. This can be efficient, but it also creates risk if decisions are not documented or independently checked. For example, management may override credit terms to related parties or delay recording liabilities to improve financial appearance. This risk matters because lender assessment depends on reliable information and disciplined governance. The common caution is to look for audit qualifications, frequent accounting adjustments, unexplained related-party transactions, weak segregation of duties, and inconsistencies between financials, GST, and bank statements.