Develop Your Business Radar - Recommendations By IMA and ACCA

In the Institute of Management Accountants (IMA) Accountancy Futures Academy, a best practices document. The Accountancy Futures Academy contributes to the Association of Chartered Certified Accountant's (ACCA’s) program of research and insights with powerful visions of the future. It provides a platform to look forward, to tune into the emerging trends and discussions in the global business and policy spheres and the latest reforms facing the world of finance.

By looking to the future it helps the accountancy and finance professions stay at the cutting edge. The Academy’s work fosters fresh thinking and innovative discussions, identifies the barriers to and facilitators of tomorrow’s successes, and identifies the potential strategies that will enable business and finance to navigate the choppy waters that lie ahead.

The FCCA Executive Chairman, Ng Boon Yew, says "This report thoroughly examines the key factors that ACCA and IMA members should be thinking about to prepare for future opportunities and challenges over the next 5–10 years. In so doing, it identifies 100 emerging drivers of change that directly or indirectly impact business and the accountancy profession. Additionally, it provides a number of future scenarios for the profession while sketching out the ‘must do’s’ for them to be successful over the next decade.

Although the report is from 2012, the three key recommendations that jump out at us are as follows:

1.) Assume and plan for business volatility and turbulence.

2.) Develop your business radar.

3.) Focus on the holistic view of complexity, risk and performance.

These three suggestions are, at first glance, a bit problematic. How should we ramp up our abilities to meet these needs? This is where technology comes into play. Predictive Risk Analytics for complexity management is an ideal way to address all three of these suggestions in parallel. What we recommend is developing a charter document that drives these suggestions into an actual proof of concept. Then, your firm can start to educate your organization while you obtain real world experience. The amazing thing about trials of this type are the unexpected discoveries that take place. One example is when you assess an ERP data set. Many discoveries are made that make you realize that it is very possible to have your own business radar that allows managers to assess infrastructure complexity, risk and performance. What the organization does with these discoveries are the next challenge. But by identifying potential complexity issues, you have made a huge step forward! Risk mitigation strategies can then be built and acted upon.