In 2023, CFO are faced with a very complex, uncertain and a highly volatile business sphere to operate in. Currently, CFO’s are made to deal with the aftermath of the Covid-19 pandemic, the unending pressure to adopt ESG reporting, the need for digital transformation as well as post-election economic meltdown for the Kenyan based businesses.
Financial management not only involves the process but also having the right team to spearhead the functions of the department. 20% of the businesses barely survive beyond the first year and only 30% of the MSME’s will be able to celebrate their 10th birthday, this is according to Bureau of Labor statistics (https://www.bls.gov/)
For most businesses, unpaid bills/ open invoices have become a normal occurrence. Sadly, debtor management has become a nuisance for most businesses to an extent, most have decided close shop.
The Journal of Risk and Insurance has revealed that businesses with established Enterprise risk management procedures have a 25% chance of increasing their business value.
Enterprise Risk Management (ERM) standards are prescriptions that provide organizations a structure for controlling risks. Organizations may identify, evaluate, and manage risks that could have an impact on their operations, financial performance, and reputation.
This is a form of tax that is paid by an individual or non-individual tax payer that is not fully covered under PAYE and is remitted periodically. It is paid by a tax payer whose annual tax liability is estimated to exceed Kes. 40,000.