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PwC's Risk in Review 2014

Posted by James McCallum on March 30, 2014 at 18:30

Pricewaterhouse Coopers (PwC) has published its annual Risk in Review survey. Nearly two thousand global corporate professionals representing a broad cross section of industries responded to provide insights into how their organizations meet the challenges of enterprise risk management.

The study was published against the backdrop of an emerging Eurozone recovery, US Sequester driven GDP decline, BRICS vacating the leadership role of global market drivers, the factory collapse in Bangladesh, the

Advice twice as nice: How the digital environment can deliver advice that builds financial experiences

Posted by Harriet Wakelam on March 28, 2014 at 1:03

Despite the global trends demanding that individuals take greater action to manage their personal finances, a huge number of retail customers fail to either seek or use professional financial advice. In the UK, a recent survey by Yorkshire Building Society found that more than one in four savers are finding it difficult to access or afford financial advice. In the wake of the implementation of the Retail Distribution Review (RDR) in the UK, most high street banks, and many financial advisers, wi

SME World 2014: Transparency Gets the Loan

Posted by James McCallum on March 27, 2014 at 18:30

Though 90 per cent of Dubai registered companies are small and medium enterprises (SMEs), just 4% of all business loans goes to SMEs. In developed economies lending to SMEs goes well into the double digits.

Vikas Thapar, CEO, SME Business, Emirates NBD, offered this observation during a panel discussion at SME World 2014 in Dubai. Mr. Thapar went on to explain that banks are reluctant to provide loans to SMEs because of regulatory compliance restrictions and the lack of transparency in SME busi

A Taxing Problem: Digital Assets and Global E-Commerce

Posted by James McCallum on March 26, 2014 at 18:30

The Independent reports that Ireland's Chartered Accountants are warning that "new OECD proposals on taxing hi-tech multinational companies will fundamentally change business landscape."

The OECD has published a draft discussion on companies operating in the digital economy. The question of determining tax liability for companies with a business model spanning multiple countries is a growing concern for national tax agencies. Outsourcing, offshoring, the use of tax havens and global e-commerce

Risk Leadership: Driving Cultural Change through Engagement

Posted by Bryan Whitefield on March 26, 2014 at 7:14

Risk Leadership: Driving Cultural Change through Engagement

So many people that I meet for the first time from outside the risk profession have a very poor perception of risk management as a discipline. They see it as a compliance activity at best and most see it as a handbrake on business. Recently my wife described me to a new acquaintance as one of the fathers of modern risk management and the person turned to me and said, “So you are to blame!”

You and I know the value of risk management.

SME's Stand Their Ground, Get The Loan

Posted by James McCallum on March 25, 2014 at 2:30

Terrific piece on SME lending in yesterday's Irish Independent.

More than half of all lending decisions appealed to the Credit Review Office by small and medium enterprises (SMEs) are overturned. This is a good lesson for SME's to be persistent in the face of rejection. SME's that can show confidence in their business prospects and demonstrate a creditworthiness can turn a negative decision into a green light. The key to this happy reversal of fortune is being able to provide evidence of creditwo

Risk Leadership: Why History Keeps Repeating Itself

Posted by Bryan Whitefield on March 24, 2014 at 6:14

Since Darwin’s Origin of the Species we have recognised how nature adapts to survive. Modern humankind continues to adapt to survive while following these two innate risk management principles:

• If it hurts us we learn and take action in proportion to the degree of pain.

• The next time we face the same pain we are better prepared and we go back for more and either avoid the pain or at least find a way of working to a new pain threshold.

Why history keeps repeating itself is simple really.

Singapore Sling: Basel III Amps SME Credit Risk

Posted by James McCallum on March 23, 2014 at 2:00

SME lending just got more expensive in Singapore. Basel III capital requirements has increased the risk weighting on SME loans. Banks are now required to set aside more capital to protect against SME loan defaults. This will drive up the cost of capital for SME’s as lenders pass on added costs to borrowers to maintain healthy margins on SME loans; Singapore’s Business Times reports.

SME’s are a critical driver of economic growth in Singapore. Bank loans to the segment grew more than 10% in 2013.

Anatomy of a Tax Audit

Posted by James McCallum on March 22, 2014 at 2:00

Its that time of year again. April 15th looms ever larger as small businesses scramble to meet the IRS tax filing deadline. For many small businesses, tax filing is handled by a trusted accountant or business adviser. That tends to take the trauma out of this annual exercise in pain. But even with the help of a tax professional the angst of the season is always a pressing concern.

The enclosed infographic published by oBizMedia, displays some startling data about audit risk and its cost t

SME Capital Formation: Money to Main Street

Posted by James McCallum on March 21, 2014 at 2:00

Dun & Bradstreet has initiated a timely capital formation initiative for small businesses. Access to Capital - Money to Main Street is an event tour that will bring together regional providers of funding for small businesses and start-ups.

Economic recovery is combining with technology to energize innovations in small business funding options. Money to Main Street looks to promote the numerous funding options that are open to small businesses. Crowd-funding, micro-lending, asset financing, lea

SME Credit Channels Open

Posted by James McCallum on March 20, 2014 at 2:00

Golden Pacific Bank in California has created a new lending subsidiary to provide SBA loans for small mid-size business enterprises (SME). The program called SmartBiz uses an advanced technology platform that allows the bank to reduce the cost of borrowing and extend credit more efficiently to creditworthy SMEs.

The lending platform was developed by the firm BillFloat. The technology enables SmartBiz to efficiently originate, process and close SBA loans. The cost of processing loan applications

Mind the gap between the customer and the platform

Posted by Nick Levy on March 19, 2014 at 19:37

Customers? They’re more connected and empowered than ever. The result? Financial services providers need to focus on the creation of customer platforms that deliver a satisfying experience, as well as the services and products they need.

What do we mean by a platform? In short, a platform seeks to provide an experience that adds value to the user experience beyond a list of services and products. A good platform also increases long- term customer engagement by adding new features and experiences

SME Credit Repair

Posted by James McCallum on March 19, 2014 at 1:30

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As the US economy slowly emerges from the great recession many small businesses are looking upon battered and bruised balance sheets and income statements. Before the downturn they looked young healthy and vibrant but the distress of the credit crunch, high unemployment and record business closures has taken its toll. Receivables growing longer in the tooth each month. Write offs of bad debt up. Client defections, pinched profit margins and market erosion due to decreased buying power, busin

Deductions and Tax Audit Risk

Posted by James McCallum on March 19, 2014 at 1:30

The filing deadline for filing taxes is fast approaching. Small Mid-Size Business Enterprises (SME) need to be aware of all the deductions afforded to them by the tax code.

Our friends from Balboa Capital sent us this reminder about the Section 179 Tax Deduction...

...There have been a lot of questions surrounding the Section 179 deduction for 2014*

…According to the IRS, the Section 179 tax deduction limit as of January 1st 2014 is $25,000. This is a sharp drop from last year's limit, but it

Cultural Revolution at Apple: Lessons for SMEs

Posted by James McCallum on March 18, 2014 at 14:00

Marketplace Interview:

Interview by Kai Ryssdal

Tuesday, March 18, 2014 - 15:30

This Marketplace interview is relevant to the tricky issues surrounding the transformation of business culture of SME's. Since the death of Steve Jobs, Apple has been struggling with transitioning its corporate culture into a post Jobs era.

SME’s whose business brand and culture is often associated with the founders personality and ego creates transition problems when the founder leaves or refuses to alter the business

Rationalization: reduce complexity and innovate!

Posted by Dominika Dorobisz on March 18, 2014 at 12:16

Let’s face it. Complexity is a fact of life in financial services. Mergers and acquisitions, organizational changes, and service offerings across multiple locations result in a maze of disparate and disconnected applications and platforms.

In this environment, radical action is needed to lower maintenance costs, improve operational efficiency and improve customer satisfaction. Rationalization today is mandatory to simplify and improve the way that financial institutions organize their daily busin

A Whiff of Risk

Posted by James McCallum on March 18, 2014 at 1:30

When you get a whiff of risk you must react to assess its danger and do something to protect yourself from its impact. Failing to do so could have catastrophic consequences. Take for example last weeks building explosions in Harlem; shaking the foundations of New York City when two apartment buildings collapsed from a gas line explosion.

The explosion killed 8 people, wounded dozens, destroyed the homes of many families and three small businesses. It closed a major commercial thoroughfare halt

Half a League, Half a League, Rode the 600

Posted by James McCallum on March 18, 2014 at 1:30

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So begins Alfred Lord Tennyson's famous poem, The Charge of the Light Brigade. The poem bespeaks the glory and folly of Pax Britannica's imperial apex; yet still offers dear lessons for those dispassionate enough to listen.

Tennyson recounts the doomed charge of a British cavalry unit at the Battle of Balaclava during the Crimean War. British Intelligence provided the Light Brigade Command incorrect information, under estimating the strength of the defending Cossacks. As the assault commenced

QE Taper Risks Spike in Global Interest Rates

Posted by James McCallum on March 18, 2014 at 1:00

Forbes Reports:

3/17/14

"...The Federal Open Market Committee (FOMC) expects the taper of the Quantitative Easing to continue. Economists expect the Federal Reserve to cut another $10 billion from its monthly asset-purchase program at its two-day monetary-policy meeting, lowering its monthly bond buys to $55 billion.

The FMOC meets Tuesday and Wednesday, and it will be the first one overseen by new Fed Chair Janet Yellen. Bond traders will focus on the commentary that accompanies the decision, wh

May Luck Be With You

Posted by James McCallum on March 17, 2014 at 1:00

It is said all the time. May you have good luck in your new endeavor. We realize its just an expression of goodwill but it does speak to the power and predominance of the notion of luck. Its as if the fates of chance and the charm of serendipity is the ultimate factor separating success from failure.

This is absolutely the case for manufacturers of rabbit foot good luck charms, shaleigh wielding Leprechauns and other providers of magic elixirs and mojos that steer the gods of fate to your per

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