In recent years we have witnessed just how costly the laissez faire attitude to risk and burgeoning debt has been for 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 subprime 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.
The UK has lost its Triple AAA status with most forecasters still failing to properly capture the negative impact of "deleveraging" - or households, businesses, banks and the government trying to cut their big debts – coupled with a serious risk of a further worsening in the Eurozone's mess.
Against this back drop it is questionable whether even the anaemic recovery expected by the Office for Budgetary Responsibility in 2013 will take place.
A forensic analysis of your company’s current Debtors Book at this time 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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