©
SUITABLE ORGANIZATIONAL, ADMINISTRATIVE, ACCOUNTING STRUCTURES AND BUSINESS CRISIS: PREVENTION, ANALYSIS AND CONTROLS
ACTIVITIES AND SERVICES
A crisis is a phenomenon that was once considered extraordinary, while today it is often classified as a normal or recurring event. The company must therefore develop the ability to prevent this state by using appropriate tools. These systems can allow for a timely perception of a possible crisis so as to be able to intervene immediately before a degenerative process begins. The degeneration of a crisis can in fact lead to problematic situations such as recovery plans or, even worse, the closure of the company. Often a crisis is not an inevitable and sudden event but rather derives from the accumulation of errors committed over time. Respecting adequate administrative and accounting organizational structures and management control through its tools and activities are a valid help in understanding whether or not there are symptoms of a possible crisis. These must then be correctly interpreted by management so as to be able to initiate appropriate corrective interventions.
The Audit and the controls carried out by the Board of Auditors are also very important tools and control activities that can, with an ex-ante and not (only) ex-post prevention vision, help prevent business crises.
- Adequate administrative and accounting organizational structures
- Management control
- Budget analysis
- Strategic analysis
- Structured planning and control system
- Balanced scorecard
TOOLS TO PREVENT THE CRISIS
ACTIVITIES AND SERVICES
Among the elements that can facilitate the understanding of the company situation and the risk that it is facing a potential threat of a crisis situation, the presence of the following can be indicated:
• an adequate organizational structure;
• an adequate administrative structure;
• an adequate accounting structure;
• a management control system;
• a structured system of balance sheet analysis;
• a strategic analysis system;
• a structured programming and control system;
• the Balanced scorecard.
- Adequate organizational structure
- Adequate administrative structure
- Adequate accounting structure
- Management control system
- Structured system of balance sheet analysis
- Strategic analysis system
- Structured planning and control system
- Balanced scorecard
©