Business Continuity - Volcano

I will be presenting at the Herts Chamber of Commerce Breakfast meeting tomorrow (Wed 9th June) at Cheshunt Marriott.
Many businesses have lost money because they didn't have a Plan B in place when the volcanic ash struck. The whole world was affected, in the main because flight patterns could not continue as normal. Staff were in the wrong country - unable to communicate with offices, Staff shortages occurred within offices - Bookings were cancelled - supplies delayed.
Some hotels were able to break even as they had guests staying longer while others couldn't reach them, but it will take months for all payments to clear.
I don't think anyone could have forseen the volcanic implications, but some simple planning and communication could have allowed Plan B's to be put in place in advance of any incident affecting the area you are based in......................remember Buncefield.
www.ortaz.com

MPs Expenses

The soft approach has gone. It is very clear from Sir Christopher Kelly's report that MPs will be brought into line with the rest of company employees. Second homes will no longer be flipped, and MPs will have to rent small properties instead. The benefits that they voted for themselves will all go. It was interesting to hear a paramedic on the radio this morning saying that he had worked for the NHS for 33years and had NEVER claimed a penny in expenses.
One contravertial issue is that family members will not be allowed to work for an MP 5 years hence. I am sure there are many wives/family members out there who do a great job and where an office is at home, employing someone completely independant will bring completely different risks.

Operational Risk - MP's Expenses

I listened to the radio this morning and heard an MP say that she had tried to repay expenses (rental deposit) 4 years ago, when she first became an MP, but was told by the Fee Office that there was no way to repay overpaid expenses and that she should offset the amount against a future claim. It begs the question – What accounting system is the Fee Office using? In this case the original claim is mis-stated and any future offset claim will also not give a “true & fair view”. Many companies are no doubt asking the question – why are THEY fined by regulating bodies or HMRC for incorrect/misleading paperwork?
Even my teenager was able to get the point, succinctly put.............. “Duh!”
The Operational Risk issue being that accounting systems must be able to record refunds/repayments, in as well as out. Basic!
Interview followed by this morning’s newspaper article about David Wilshire's (MP) expenses....
"The payments were made strictly in accordance with the rules and payments were made directly to the business’s bank account (which was in its own name and controlled by it).” Why would legitimate expenses be paid over to his company and not the individual homself?

The House has to get itself in order!

Fraud

The UK’s top PLCs are exposing themselves to the risk of fraud due to poor counter-measures, according to a new report.
New research by accounting firm MacIntyre Hudson and the Centre for Counter Fraud Studies at Portsmouth University found that of the 32 FTSE 100 companies surveyed, 55% of the capital could be at risk from fraud due to systematic weaknesses.

It also found that while 56% of those asked did have a counter-fraud strategy, more than half had no measures in place to review the effectiveness of such a strategy, reported the Telegraph.

Being aware of the increase in fraud at all levels during a recession we have created a workshop which strips processes back to basics and highlights where weaknesses might be found and give attendees the information and tools to use to return to the workplace more aware of what to look for when dealing with other staff, customers and suppliers. Suggested tools have already proved fruitful to one small business, with profits up and the culprit caught within a week! The workshop can be adapted for all levels of staff including FDs (strategic) through to the office junior.
For more information :- www.ortaz.com

Power Corrupts!

Dining at a popular, fully booked, restaurant last night there was a power failure. You may be thinking, bad luck for all concerned - not for the guests as it was 10 pm and everyone had eaten their main courses at least (and we were offered extra candles!). A one off occurrence then - 'fraid not either, read on. The restaurant is in an area where power failure is not uncommon and it was established that on this occasion, the power would not be reinstated until circa 1 am ie long after the evening diners had left ............. without paying!!! The restaurant was solely reliant on the goodwill of the guests to pay the bill the following day. Food for thought? Of course, some of the guests had a little sport at the expense of the management when giving address details resulting in a little stifled laughter and a sense of unease and shifting of 'management' feet! Fortunately the reputation of the restaurant did not suffer as guests had at least eaten, however had this not been the case diners may be forgiven for thinking that the lack of contingency planning was shortsighted on the part of the restaurant and could easily have taken the view not to dine there again. The ability to recover all monies owed, the resource required to do this and the catch up in terms of tying up any additional drinks etc to electronic bills today is a 'task' that could have been avoided! Perhaps we should have ordered more champagne ....

Operational Risk - Harriet Harman - Women in general

What Harriet Harman has said about " Britain should never be governed by men alone...there must always be a woman in control working alongside a man..........if it had been a case of the Lehman Sisters in America rather than the Lehman Brothers then the current world financial crises would never have happened..... "
There may be some truth in what she has said with regard to the recession and Lehman Brothers. This blog does not condone or condemn what she said, but the research our company has carried out recently has shown us that women do think differently - whether self employed or leaders of corporations. They are more cautious, more risk averse, more aware of work/life balance, but feel they might have worked harder to prove they "can do it"! On the basis of our research we have devised a half day course about women in business (and men are very welcome to attend) to learn a bit more about why women do things the way they do and could they take a few more risks to reap those all important rewards!

Food for thought:-
“Based on current trends, by 2020, something like 60 per cent of the UK’s millionaires will be women – whether it’s through divorce, inheritance or business.” Janette Anderson: Managing Director, Anderson Associates.

So whatever your thoughts on women in general, they are becoming more savvy and are here to stay!!

www.ortaz.com

Swine Flu still at large!

Swine Flu is still a very serious threat to your business. Have you taken the necessary steps to protect your business? e.g. Advised employees on what they should do if they think they have the flu? Have contingencies in place to cover absence? Increased cleanliness awareness around the office?
Take 5 minutes now to ensure that you have plans in place. If the Govt. figures are correct, then the situation is only going to get worse during the winter, and 5 minutes now could save your business!
www.ortaz.com