As mentioned in the previous post, risk management has only begun to take shape in Vietnamese companies. The global economic recession has left many out of business, and for those who have sailed through the storm, there are lessons to be learned. In this entry, we will review some main issues with business risk management in Vietnam.
Just a quick reminder, in our previous blog entry, we have discussed about step 1 and 2 of the 5 steps. In this article, we continue to talk about the remaining steps that complete this circle of customer value management.
Before the global financial crisis back in 2007-2008, risk reporting may not have been on the plate for many companies and organisations around the world. However, since then, there has been “increased attention to the formalisation of risk management” (CGMA, 2012). But is that enough for Vietnamese businesses, given the fact that many have gone bankrupt or been caught up in legal entanglements?
Following our ethical articles, this week we will discuss an ethical dilemma in which you are put in an awkward situation.
Customer relationship management has become a central focus to all organisations. Nowadays, companies have gradually recognised the significant costs caused by losing a customer and have worked hard to better understand, measure, manage, and improve customer retention. A study suggests that “for each existing customer that left, the company needed to bring in 1.2 new customers at an approximately 20 percent lower price to replace the lost revenue, and two to three new customers to replace the lost margin“ (Karl Stark and Bill Stewart in “The Hidden Costs of Customer Attrition”). To help companies address customer value creation issues, this article provides a systematic approach to set up a customer value management cycle.
As an accountant, you may be faced with some ethical dilemmas in which you have to make difficult decisions or you hardly know what to do. These ethical situations do not always have a clear cut response, and often involves an apparent mental conflict between moral imperatives, in which to obey one would result in transgressing the other.
Professional ethics are a sensitive definition in any professions, especially during the recession. According to a survey by ACFE (Association of Certified Fraud Examiners), the recession has led to an increase in corporate fraud. In Vietnam, there have been neither official reports nor statistics about the state of professional ethics in companies. However, when looking at recent Transparency International’s corruption perceptions index, Vietnam is listed in the red zone with alarming professional ethics.
Finance and Accounting is always one of the first choices for many students when they need to make their career decisions. According to Vietnam’s Ministry of Education and Training, the number of students registered for Finance and Accounting in annual Vietnam’s university entrance exam from 2009 to 2011 accounted for 41% of the total number of students taking part in the exam. Moreover, in recent years, international bodies and associations such as CIMA, ACCA, CPA, etc. have also gained more and more popularity in Vietnam. It is not surprising that careers in Finance and Accounting are becoming very attractive and rewarding as Finance and Accounting are the backbone of most organisations. Finance and Accounting teams play an important role in providing the Management Board with strategic decisions in the uncertain economy. The important status of Finance and Accounting team has placed higher challenges and responsibilities onto the hands of finance professionals and accountants. In order to support the organisation to meet its strategic objectives and grow, they are required to be not only excellent at their core finance and accounting specialism but also skillful in other leadership and soft skills.
With the continuing global economic downturns, the Eurozone crisis, the shift of the power towards the East, the day-by-day technology innovation, increasingly complex demands are being placed on finance functions. Finance professionals are expected to provide a larger mandate, from their traditional role of transactional and cost efficiency to analytical and decision support stage for the business. The question is “Will they survive or even better, sail through the storm smoothly?”