The current turmoil in world financial markets provides a case study in how connected the world economy has become. It also delivers an object lesson on the importance of good corporate fundamentals, regardless of size of business, the prevailing economic conditions, or industry. In fact, what's happening now shows that, if anything, good corporate fundamentals are even more important during economic booms to insulate against the inevitable slumps.
The situation, more than ever, highlights the need for leadership, good governance, risk management and a grasp of the big picture.
With business being transacted globally in increasing volume, what happens in Wall St demands close attention in Sydney or Singapore. Each new development - which is becoming a daily occurrence - bears this out.
What are your views on the ills that have befallen the finance markets? What are the causes and where to from here? I'd like to hear your thoughts.
REPLY FROM THE BLOG AUTHOR, ALEX: Tony, the package has not been enough... I hope our professional talents are more focussed in developing initiatives and reviewing governance, risk and performance, rather than being locked into 100 year careers in pure compliance... a valiant thing to do, but we can contribute in so many other ways as well. Alex
Posted by: Alex Malley | November 17, 2008 at 06:56 PM
With the rescue package of US$700billion in the US, I believe a few more watchdogs will be created and more accountability will be created. I believe accountants like us will play a bigger role in this coming years.
Posted by: Tony Chan | October 13, 2008 at 03:19 AM
REPLY FROM THE BLOG AUTHOR, ALEX: Max, great to hear from you. It sounds like you are really collecting some very relevant qualifications. I can honestly tell you that accounting is the universal language... you cannot go wrong... stay in touch!
Deny, a man with my own heart. In a recent interview I spoke of mankind's inability to remember mistakes. If you are flying Qantas in October I speak with Peter Switzer about such issues on Qantas Business.
Rhonda, if you don't tell anyone then I won't say that we have known each other for 100 years... and you should be crowned Superwifeandmum... 24/7 doesn't really cover it old (oops, long term) friend!
Posted by: Alex Malley | September 24, 2008 at 01:44 PM
It is great that I find your blog. Now I am studying Master of Translation and Interpreting at UWS. I am going to graduate soon. After graduate, I plan to study Master of Accountancy at UWS or UTS or Macquarie, depending on which University would accept me.
From now on, I would read your blog everyday.
Best Wishes!
Max
Posted by: Max | September 22, 2008 at 01:16 PM
Hi Mr President.
I remember what Courtney Clowes said during our Corporate Governance and Accountability class (IPP Program) : "History repeats itself simply just because people never learn from the past".
Last Wednesday (16 September) I had little discussion with fellow CPAs during our first Indonesia chapter CPAA CPD session, we discuss what had happened to Lehmnan Brothers and AIG for the past week. In that discussion we agreed that what happened to Lehman and AIG has similar "taste" with what happened in Indonesia in 1997-1998.
Well mate, we had this kind of experience before....The next question is when we will learn from the past?
cheers
Posted by: deny.Poerhadiyanto | September 20, 2008 at 12:40 PM
How true Alex - like parenthood, good governance is a 24/7 reality
Posted by: Rhonda Wheatley | September 19, 2008 at 02:56 PM