Risk Management , First Year of BCD
After being member of the adjudication of Tusiad’s “ Bu gençlikte iş var ” which can be translated as “ Young Generation has the Future “ for three years , at the end of my first year own initiative , I’ve new experinces , observations and acquisitions .
I would like to talk about these experiences on this months comment under risk management title.
My strong beliefs get strengthen about a enterpriser should have a capital sine qua non are ; a very strong knowledge about the businees going to be achived, mean it, ambition and self confidence . Patience and time is also essentials.
BCD achieved profit at the end of first year performance as it was planned. Sustaniability , consistency and growing is our new standart issue on our managerial agenda.
Than What’s happening on the markets & SME . Consultant point of view and banking differentiate could be summarized as below.
Banking and other financial institutions decisions and perceptions generally come over financial figures . SME almost always deliver their financial documents to their bookkeeper accounts (outsourcing) very late and generally these documents are incomplete. As a result SME owner and managers couldn’t evalute the financial results efficently and these reports transfered to banks without any control so Banks may have a misunderstanding about SME . A amendment may helpfull to recover the mistakes but all amendment may not recover the reputation and trust. The worse side is unfortunetly SME owner/manager couldn’t be aware of the real threat and costs.
Outsourced Accounters are generally unpaid and lesspaid, worst the payments are never paid on time. Their issue is all about to take incomplete documents and deliver tax statements to SME.
Banking dynamics dramaticly changing, “good old days” are now in the past. NPL is rising accompanying with additional new targets. Under profit and cost pressure banking professionals seems to lose “know your customer” vision and customer focus . Most employee don’t have enough experience about their hinderland and willing to improve themselves are weak. Awareness of the dynamics beyond balance sheet is a threat both for the bank and for the customer , for SME.
This lack of business communication may be recovered by SME’s professional plan aim to present their business dynamics and realities to bankers.
SME main problem can be explained by a daily basis working life basis on instantaneous reactions to instantaneous come outs.In other words SME lives what the business life forces . Cash flow – budgeting – risk management for both the customers and suppliers – the bank going to be worked – current ,installment, spot credits management are the examples of dismanagement of SME .
One another big problem of SME is “ partnership “ . The unbalanced capital – workforce – work sharing causes problems to SME which established on partnership. At the end of partnership separation occurs with a loss of capital and business.
Another very important and suffering issue is group credits. Each SME must be managed by themselves with their dynamics and they must avoid to spread out to different business corporations. This is also a convenience for banks for their credit evaluations.
The risks mentioned above are the organizational and business process issues subject to “Risk Management “ can be expresed to my first year different observation and experiences.
BCD providing services for these risk management issues .