Almost anything worth doing is inherently risky. But many businesses and individuals try to avoid risks and play safe. But this safety often leads to mediocrity, complacency, and ultimate downfall as seen in the case of Blockbuster, Kodak, Xerox, Yahoo, Borders Bookstore, and many more. In today’s VUCA (volatility, uncertainty, complexity, and ambiguity) world, apart from forecasting the low-probability, high-impact “Black Swan” events with predictive analytics, business leaders can protect their business with good risk management practices and further hedge their business. In addition, in business, there is no innovation and growth without risks. Innovation and growth are intrinsically tied to risk; if you want bigger returns and rewards, you have to take on more risks. So how can business enterprises effectively manage risks? Below are the 5 key enterprise risk management (ERM) steps.
Finance uses the discipline and data from a strong Accounting team as the launching pad for planning and creating their company’s future. A seamless handoff between the Accounting and Finance departments is critical in creating and executing an effective strategy. The Finance function is about creating the optimum analytical framework to make strategic decisions.
Team INEOS (previously Team Sky) dominated the Tour de France from 2012-2019 by winning the general classification (racer with the fastest time over the 21 stage race) seven times over that span. Although cycling may look like an individual event, team tactics and team drafting play a huge role in the outcome of a stage race, especially so for a race 3329 kilometers long.
Do your Recording and Reporting systems lend transparency to your business? Is your corporate structure and governance process in line with your size, goals and culture. In this first segment on our Series: The Defining Attributes of a Successful CFO, we explain the importance of Accounting, as a key pillar in the house of the Chief Financial Officer.
Can you imagine working for a company where employees frequently had to make exceptions to get things done? Or where deadlines were constantly being missed?
It takes great skill to run a business effectively. Too much or too little control can result in failure. However, finding the right balance is achievable if you know what to look for.