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ADEQUATE ORGANIZATIONAL, ADMINISTRATIVE, AND ACCOUNTING STRUCTURES AND BUSINESS CRISIS: PREVENTION, ANALYSIS, AND CONTROLS
The crisis is a phenomenon that was once considered extraordinary, whereas 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 the crisis can, in fact, lead to problematic situations such as recovery plans or, worse still, the closure of the company. Often the crisis does not represent an inevitable and sudden event but rather derives from the accumulation of errors made over time. Complying with adequate organizational, administrative and accounting structures and management control through its tools and activities represent a valid aid to understand whether or not there are symptoms of a possible crisis. These must then be correctly interpreted by management in order to initiate appropriate corrective actions.
Audit Audit and the controls carried out by the Board of Statutory Auditors are also very important tools and control activities that can, with a preventive ex-ante vision and not (only) ex-post, help to prevent the business crisis.
AREAS OF ACTIVITY AND SERVICES
- Adequate organizational, administrative and accounting structures
- Management control
- Financial statement analysis
- Strategic analysis
- Structured planning and control system
- Balanced scorecard
THE TOOLS TO PREVENT THE CRISIS
AREAS OF ACTIVITY AND SERVICES
Among the elements that can facilitate the understanding of the company situation and the risk that it may be facing a potential threat of a crisis situation, the following can be indicated:
• an adequate organizational structure;
• an adequate administrative structure;
• an adequate accounting structure;
• a management control system;
• a comprehensive system of financial statement analysis;
• a strategic analysis system;
• a structured planning and control system;
• the Balanced scorecard.
- adequate organizational structure
- adequate administrative structure
- adequate accounting structure
- management control system
- Structured system of financial statement analysis
- Strategic analysis system
- Structured planning and control system
- Balanced scorecard
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