Member Article

Portsmouth Businesses take advantage of latest research

Portsmouth businesses took advantage of the latest research to improve their operations against the economic climate last week at a Chartered Institute of Management Accountants (CIMA) event held at the University of Portsmouth Business School.

The Chartered Global Management Accountant (CGMA) survey released this week by CIMA and the American Institute of CPAs (AICPA) shows that 70% of respondents from UK companies believe organisations are too sensitive to economic crisis and that 68 % agree their businesses must seek new ways to be resilient and less susceptible to macro-economic volatility.

Businesses from Portsmouth learned the latest results from recently published research by CGMA from Professor Lisa Jack at the Portsmouth Business School and colleagues from University Pablo de Olavide in Spain. The research examined how businesses within the food supply chain can best manage both their potential risk and performance.

Nearly a quarter of businesses in Portsmouth have connections with this supply chain and are hoping to put into practice the latest findings from the report, ‘Performance Measurement and Risk Management in intermediary food chain businesses’.

Professor Lisa Jack, Professor in Accounting at Portsmouth Business School, speaker at the CIMA event and co-author of the ‘Performance Measurement and Risk Management in intermediary food chain businesses’ report, said:

“Businesses at the event learned that both risk and performance need to be managed throughout an organisation for it to survive and the various ways businesses have chosen to do this. Building long term relationships in which price becomes a secondary matter to quality and trust, and excellent communications with customers and suppliers are important. Knowing the key performance indicators for the supply chain and not just your individual business are also vital”.

Charles Tilley FCMA, CGMA, Chief Executive, CIMA, said:

“There will always be another U.S. debt crisis, Arab Spring or Eurozone disaster just around the corner. This uncertainty simply cannot drive business strategy. These ‘grey swans’, as some business commentators have termed them, are prompting organisations to cut spending and investment at a time when innovation is absolutely vital to our economic health.

“Indeed the seizing of opportunities is key to long-term survival and so we must all plot a suitable course between risk and innovation, managing the approach and mitigations put in place to address these uncertainties.”

Five top tips for business leaders to build resilience

It is vital for organisations to adjust their risk radar and anticipate the impact of such scenarios on investment and future growth without being diverted from creating a suitable long-term strategy. This will build resilience in the face of ongoing economic uncertainty.

1. Understand your business model. What creates, and could potentially destroy, value in your business?

2. Harness the power of transparency. Create a line of sight between capital sources and how it will be invested in the sustained success of the business, beyond the short-term.

3. Ensure robust information flows. Build confidence in the right information that drives investment and risk mitigation decisions.

4. Go beyond defining a risk appetite. Have a risk attitude that empowers all in the business to take appropriate risks that drive growth and opportunity.

5. Be clear on the skills and talents you need now for tomorrow. Identify and close potential skills gaps you may have when considering your future business model, markets and innovation agenda.

CGMA business experts make up the world’s largest community of management accountants and guide business decisions across the globe, including at 95 of the world’s top 100 brands and 91 of the Fortune 100. They hold senior positions, including CEO, CFO, and Finance Director, and have a broad perspective on the long-term prospects of their organisations, their markets and their regions.

CIMA hold a series of events around Southern England and across the year. For further information visit www.cimaglobal.com/localevents

This was posted in Bdaily's Members' News section by CIMA UK Regional News .