All commercial transactions contains an element of risk, yet at the same
time how adequate are the mechanics and systems that are in place to manage
these risks?
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 jettisoned.
An analysis of the most spectacular flame outs all have one common denominator– the architects of these calamities were oblivious to the risks that their organisations were exposed to.
Counter party and accompanying market risk should be under constant evaluation. All areas of exposure need to be constantly policed.
A forensic analysis of the current Debtors Book might make for uncomfortable reading but like most unpleasant tasks it should not be ducked.
It is always preferable to take remedial action such as a write down whilst you are in control of your own destiny rather than have a third party appointed to do it for you.
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 jettisoned.
An analysis of the most spectacular flame outs all have one common denominator– the architects of these calamities were oblivious to the risks that their organisations were exposed to.
Counter party and accompanying market risk should be under constant evaluation. All areas of exposure need to be constantly policed.
A forensic analysis of the current Debtors Book might make for uncomfortable reading but like most unpleasant tasks it should not be ducked.
It is always preferable to take remedial action such as a write down whilst you are in control of your own destiny rather than have a third party appointed to do it for you.
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