Member Article

Scotland's Accountants use football to tackle economic conditions

Businesses from around Scotland heard from Duncan Fraser, Chief Executive at Aberdeen Football Club (AFC) on how he copes with the latest economic conditions (20.02.13), following recent Chartered Global Management Accountant (CGMA) survey results showing that 70% of companies believe that business is too sensitive to economic crises, and 68 % believe their businesses must seek new ways to be resilient and less susceptible to macro-economic volatility.

The Scottish businesses were at the Chartered Institute of Management Accountants (CIMA) event at the Palm Court Hotel in Aberdeen to question and hear from Duncan Fraser about the harsh economic conditions facing Scottish football, running the day-to-day finances at a football club, and the financial and operational hurdles in delivering a new stadium for the team. Learning from other businesses and organisations about their business models along with perceived risk and performance can help focus companies, building resilience and mitigating against excessive sensitivity to economic crisis.

Alasdair Macnab FCMA, CGMA, CIMA Area Chairman for Scotland, 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 investment is absolutely vital to our economic health.

“Indeed the seizing of opportunities is key to long-term survival. These local businesses have been finding out about upcoming conditions so they can 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 100% 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.

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