Every business transaction contains an element of risk, yet at the same time how satisfactory are the mechanics for managing risk?
In recent years we have witnessed just how costly the laissez faire attitude to risk was in many institutions be they large corporations or smaller SME’s.
In the never ending quest for larger profits many of the saner measures of business were abandoned. An analysis of recent disasters from the sub prime fiasco in the US through to the Greek Debt debacle all have one common denominator – the architects of these calamities went hurtling over the cliff like lemmings.
At a time when the US loses its triple AAA rating and the growing talk is for other nations to follow suit then it surely becomes time for each and every business to take account of its exposure.
A forensic analysis of the current Debtors Book might make for uncomfortable reading but like most unpleasant tasks it should not be ducked. Better to take remedial action such as a write down whilst you are in control of your own destiny rather than have a 3rd Party appointed to do it for you
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