Maniolas

MANILA, Philippines – The Philippines’ strong fundamentals will not only keep the economy afloat, but will also ensure that the recent financial market turbulence will not have any effect on the country’s credit rating, debt watchers said. Standard & Poor’s (S&P) Ratings Services and Fitch Ratings, which granted the country investment-grade status earlier this year, said the Philippines is in a good position to weather the sentiment-led volatility. “It will not have any impact on the Philippines’ credit rating. Our outlook for the Philippines is stable,” S&P credit analyst Agost Benard said in a phone interview yesterday. He declined to elaborate. For his part, Andrew Colquhoun, Fitch’s head of Asia-Pacific Sovereigns, said the country is “well-placed” to absorb the recent sell-off driven mainly by concerns the US would reduce and eventually pullout its stimulus measures. In effect, cheap money that has been utilized to boost growth in Asia found their way back to the US on optimism interest rates would increase there. Proof of this was the plunge of the local index to its lowest level since January yesterday, to close at 5,971.05, down 3.41 percent. Colquhoun cited the large current account surplus posted by the country since 2003, allowing it to generate dollars more than enough to meet its external obligations. As of March, the current account surplus stood at $3.4 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The current account – which include earnings from exports, remittances and business process outsourcing – has contributed to Read More …

The internal audit organization of every company is moving beyond their traditional role. Often construed as an in-house “police,” internal auditors are increasingly becoming involved in various company initiatives that go beyond compliance and encompass activities that create business value. Nowadays, the challenge for most companies is setting up an internal audit organization that has the capability and flexibility to respond to the diverse business and regulatory environment. An effective internal audit function requires a diverse set of skills by resources that many companies find difficult to source and retain – resources that are available to service providers such as the Big Four firms and where internal audit sourcing comes into play. What are the options? A white paper on internal audit sourcing written by KPMG enumerated the following forms of internal audit sourcing: – Internal hiring, wherein resources within the company are pooled and trained to become part of the internal audit organization. Internal resources are assumed to have better understanding of the company’s operations and areas that are deemed to be given audit priority. This sourcing option is often selected by companies to give their valued employees an opportunity to explore various verticals of the organization and prepare them for future management roles. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 However, management will need to invest on time and money to train internal resources to achieve the capability and flexibility in auditing new and complex areas. There is also a tendency to impair independence as internal Read More …

Fear of failure is a restraining element that runs counter to any change process and improved competitiveness in business and life. Pekka Viljakainen and Mark Mueller-Eberstein, authors of the book No Fear: Business Leadership in the Age of Digital Cowboys, write that fear is a controlling emotion, and that it is an inevitable part of human persona. To go against this sense of dreadfulness, you must have a  “no fear” mindset where the emotion is dealt with, recognized, and conquered. Fear equals failure, and the leader who succumbs to that fear performs a serious disservice to the company organization, its employees, and its clients. Changes all over the world mandate leaders to be equipped to adapt to the transitions that are happening in the global community, or go down the tubes. And with the altered global landscape comes new entrants with diverse aspirations as well. They are young, pioneering, and at home with using technology and social media. They are referred to as the “Digital Cowboys”  — the first adopters of new technology and innovations. In Western movies, cowboys — the likes of Roy Rogers, The Ringo Kid and The Lone Ranger — were men who rode fast horses to scenes of trouble. They meted out justice when someone got shot at, killed, robbed, cheated or was a victim of a wrongdoing. Armed with as many weapons as possible, cowboys independently executed their judgment and action. People looked up to them for their sense of fairness and viewed them as Read More …