These are very unusual times for the world economy. We have inflation that is deemed unacceptable by the reserve banks, and a number of companies with poor prospects are letting thousands of employees go. But, while it varies significantly by area, overall most countries have low levels of unemployment.
While some companies are laying off employees in droves, others are finding it hard to find qualified people for essential positions.
These represent times of different risks to the business than in the past.
They are also times where risk and audit practitioners can add huge value by helping leaders understand and address those risks.
I am talking about risks related to not having the people you need to perform critical internal controls.
Let’s consider these two situations. They are a little different, so I will start with the situation where your company is going through a layoff process.
I have to admit that I did not handle this issue very well when my companies decided they had to trim staff counts.
The first time was with Tosco. I had been there about three years (out of the more than a decade I enjoyed as their CAE) when the company, with board approval, determined that they needed to cut costs.
My priority was on protecting my staff. I cut my training and other costs but was forced by the audit…
