The Compliance issue comes up again
The CEO of MTN has resigned over the Nigerian regulator’s fine fiasco. Accountability is an unavoidable consequence when a company suffers a financial loss. If this company were a small/medium enterprise (SME), the impact of a fine equal to nearly double the previous year’s total after-tax profit would probably have been terminal.
This is a question of compliance. The company had apparently ignored several directives from the regulator to terminate the services of unregistered sim card holders. The unanswered question is whether the CEO was aware of the continuing lack of compliance and whether he was aware of the potential implications attached thereto.
Who is responsible for compliance?
In the case of an SME it is the business owner or manager. But compliance has several facets. Firstly the business owner needs to be aware of the compliance requirement. Secondly, he/she needs to be aware of what the implications of non-compliance are. Finally, the potential financial impact of the non-compliance should be known.
Financial Management and compliance
Many SME’s struggle in what is an over-regulated business environment. They are often unaware of the many compliance issues they face. It is, therefore, critical that they have the correct guidance regarding compliance requirements and how such compliance can be achieved. The person who assumes the Financial Management of an organisation is often tasked with ensuring compliance. A company that ignores this important role player often pays the price. Hopefully, the price will not mark the demise of the company.
Financial Management – Outsource it
At Leaders Business Solutions we offer Outsourced Financial Management solutions, in addition, or along-side back end office support services to alleviate your Financial Management and compliance issues.