http://www.bizmanualz.com/information/2009/01/05/how-important-are-cash-policies-and-procedures-to-your-business.html Articles, tips and helpful information on Policies, Procedures and Processes Mon, 06 Feb 2012 17:47:01 +0000 hourly 1 http://wordpress.org/?v=3.1.1 http://www.bizmanualz.com/information/2009/01/05/how-important-are-cash-policies-and-procedures-to-your-business.html/comment-page-1#comment-66678 Gary Busby Sun, 11 Jan 2009 09:23:53 +0000 http://www.bizmanualz.com/information/?p=483#comment-66678 Having just left a large company (multibillion revenues) that failed to recognise the importance of internal controls generally, including cash management risk, I I would only add that all the above good advice in the article applies irrespective of the scale of the business itself. It is not limited to "small and medium sized companies". The risk takes effect at the level of departments and individual employees, and is no respecter of the size of the P&L or Balance Sheet - if the opportunity to commit fraud, or the likelihood of errors, exists with an individual person then the problem has to be addressed. Many of the largest corporate disasters arising from operating risk and controls have centred on indviduals: the few men at the top of Enron, one man at Barings Bank, one man at Societe Generale, one man - the top man - in the recent Madoff case. So look at how your P&P operates at the individual level and visualise the real people involved. Do not just issue P&P in generic terms. Having just left a large company (multibillion revenues) that failed to recognise the importance of internal controls generally, including cash management risk, I I would only add that all the above good advice in the article applies irrespective of the scale of the business itself. It is not limited to “small and medium sized companies”.
The risk takes effect at the level of departments and individual employees, and is no respecter of the size of the P&L or Balance Sheet – if the opportunity to commit fraud, or the likelihood of errors, exists with an individual person then the problem has to be addressed.
Many of the largest corporate disasters arising from operating risk and controls have centred on indviduals: the few men at the top of Enron, one man at Barings Bank, one man at Societe Generale, one man – the top man – in the recent Madoff case.
So look at how your P&P operates at the individual level and visualise the real people involved. Do not just issue P&P in generic terms.

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