Business And Government Under Threat Due To Poor Controls

PRLog (Press Release) – Jun 13, 2007 – Durban, Kwa Zulu Natal, June 09 2007, Corruption, Theft, Fraud and Poor Productivity has become a company’s and even a governments worst enemy in today’s competitive economic climate. This is a worldwide trend and is rapidly becoming worse. This trend needs to be reversed immediately in order to prevent total collapse of both governments, and critical manufacturers, suppliers and service providers.

Managers, and key government officials must carry the blame. This is due to the fact that these persons (who are untrained) are placed in a position where they are required to Plan, Write and Install controls. It is not unusual to find that controls that this type of person has installed fails to do its job. Theft and loss due to these poor controls are common from the likes of corrupt management and even government officials. This can be backed up by the local news reports that are becoming more frequent.    

Many companies have had to close their doors today and can be seen in the local business reports being published in the daily papers. What is not shown is the reason why the organization has had to close. Lack of funds and poor management controls are the main reasons for closure. If effective controls are entrenched and maintained, organizations will continue to thrive. Do not believe that controls are safe at all times, if either left in place without review or not updated on regular basis. All we need to do is to look at what happened to companies such as Enron. Controls were weak and senior management took advantage of the loopholes, and as is known, the company closed with terrible results.

In the corporate world, companies budget a certain percentage to cover loss. This is a bad practice as it places management in a state of compromise. It is common to hear the term; “we are at an acceptable level of loss, and fall in line with our budget” Due to this mentality, nothing more is done to lessen the loss. In today’s competitive market there is no room for this type of thinking, and the scrutiny of business controls needs to be of paramount importance.

Knowledge is power, and the more that is known about a subject, in this case “business controls” the more successful an individual, business or government will operate. If we give the correct training and tools to key persons, business will be equipped to carry out their activities more effectively. There are many methods to achieve this goal; you just need to choose the right control. The most important aspect of any business is effective safe controls.

For more information on this topic please contact Darryl Farmer on South Africa
031-903-8285 or visit our web page (http://basic123.olsaints.hop.clickbank.net)