RISKS IN CORPORATE GOVERNANCE – IT MATTERS TO ALL OF YOU
An analysis of the constant risks in corporate governance accompanied by a proposal on effective solutions is what the workshop “Risks in Corporate Governance” has brought on August 14, 2015 at the Gala Royale Convention Center. The program has featured such keynote speakers as Mdm. Tieu Yen Trinh (General Director of Talentnet), Mr. Nguyen Ngoc Bach (Chairman of BOD – CEO of AsiaInvest Group), Mr. Do Hoa (President of IME Vietnam).
Do not blame all on the finance department
During their operation, the businesses cannot avoid the risks posed by many subjective or objective factors that exert direct impact on the corporate development. Risks may come from the operations of any corporate department or from any incorrect awareness by each individual toward the observance of labor discipline. Inevitably, corporate policies and processes of risk management are not always available when any gap occurs. Mr. Nguyen Ngoc Bach said: “There are many methods of determining risks. If senior leaders comply with the law, assessing the quality of auditing, doing well in risk management, bad debts will be avoided.”
[The speakers attending the program]
Besides, many businesses always assumes the issues along the lines of revenue, budgets belong to the responsibility of the financial managent department without realizing that the root cause is the management practices by CEOs, business executives. One of the drawbacks of the Vietnamese businesses, Mr. Do Hoa said, is that the excessive focus on information confidentiality leads to no link among departments, between superiors and subordinates, which is so hard for any business to determine risks and manage. Many managers constantly draw a corporate development scheme with lofty target indicators without taking into consideration the actual external situation and the corporate capacity alike. As stated, any risk is likened to a “ambushing” snake, any delay by the business in making policies and taking remedies may lead to bankruptcy.
[Speaker Do Hoa – President of IME Vietnam]
At the seminar, the speaker gives out the principle of 4T (Take, Transfer, Terminate, Treat) in coping with risks. Making it effective requires companies to identify the starting point of risks whereby action plans will be appropriately deployed. Above all, the speakers contend that it is time to change the system of managing employees in businesses. At the same time, the leaders should appreciate the comments from other employees to make the most objective perspective.
Focus on HR barriers
Talentnet survey results provided by Mdm. Tieu Yen Trinh (General Director of Talentnet) show that only 8% of all businesses have risk management departments. This puts alarm on the status quo scenario that business owners are still too indifferent by underestimating risks. In parallel, there exists only a small proportion of businesses interested in solving the risks of human resources. Vietnam is assessed b the administrators a country with a potential of human resources and an abundance of talents. However these days, many ” Vietnamese talents” have still worked in somewhat aggressive, flippant style, but their CEOs “let the matter slide” because of immediate contributions they bring to their businesses.
Meanwhile, the common risks associated with the productivity, operating capacity, as well as ability of the employees are thinly heeded by the leaders. This more or less influence the overall corporate development. Thus, businesses need to train professional risk managers with a broad vision and flexibility upon dealing with any arising problems.
Risks do not occur just in terms of human resources. Recently, some Sale – Marketing Departments have not foreseen the risks that come from the market. Mr. Do Hoa said: “At present, most of the marketing staff often burn the phase of market analysis by proposing an ill-founded media plan that ends up in failure”. Therefore, before launching any strategy, businesses need to carefully analyze whether their own products and services will meet the needs of the customer. Especially, it it necessary for them to be pay attention to distribution channels, avoid branding in media without finding product channels. Thereby, the workshop points out the leadership perception and tries to communicate this knowledge to the staff playing decisive role in handling risks.
The workshop “Risks in Corporate Governance” by Vietnam Association of Corporate Directors (VACD) in association with Vietnam CFO Club (VCFO), Vietnam Human Resources Association (VNHR) and Vietnam Chief of Sales and Marketing Officer Club (CSMO) as co-organizers, has attracted more than 60 CEOs, HR managers, finance managers from many businesses, corporations. Rather than “close the stable door after the horse has bolted”, businesses should not immediately grasp the backlogging inadequacies and provide long-term strategy to overcome this status quo situation.