The world is currently going through difficult financial times especially in the financial markets. We have seen the collapse of large corporations and the nationalisation of others. I believe these are important times for each of us to keep up with the latest business news. Loud as the issue may seem in the western world, in some regions, it probably hasn’t made the headlines.
As students of a global qualification, we should ensure that we don’t get lost in the local perspective but always maintain a global view of the challenges facing the global economy. P1 Professional Accountant covers areas of Corporate Governance and I believe monitoring the challenges facing the financial markets and the global market as a whole may draw ones attention to certain corporate governance issues.
There are those who believe that one of the major causes of the current challenges is businesses taking on more risk than they can handle. There are those who attribute the crisis to the greed of executives, leading others to question the rational of a government bail out. The involvement of government some times to the extent of nationalisation of some corporations makes government a key stakeholder. Assessing how management can comfortably serve the interests of the government and those of other shareholders would be of interest to the students of P1. Ultimately, I believe the key questions to ask here are;
- How did all this happen?
- How do we ensure that it doesn’t happen again?
I believe strongly that the credit crunch is a possible "current issue" for the next two years under P1 Professional Accountant. There is a strong possibility that this crisis shall continue for the foreseeable future and closely following how issues evolve shall be of great assistance to any student. I believe that simply keeping in touch with the latest about the credit crunch shall go a long way in assisting any individual who is doing this paper or who is yet to do this paper.
However, it is also important to note that it goes beyond exams. It is also about being a relevant professional. It is generally agreed in my region that accountants, especially those possessing international qualifications like ACCA, are authorities on business in there respective organisations. It is therefore prudent as an accountant to keep ahead of the pack in order to provide relevant information and advice to your respective organisations on how this wave of depression may affect them. I believe this is especially crucial for those who are part of the Risk Department.
In conclusion, lets all keep our eyes open because most people are counting on us to do so.
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