CFOs and FDs in small and mid-sized businesses could improve their financial forecasting by learning from recent advice for directors of listed companies from the Financial Reporting Council (FRC), the UK regulator responsible for corporate governance and reporting.
‘Directors need to focus on the strategic, operational and financial risks facing their companies and clearly identify the nature and scope of direct, and where possible indirect, exposures to currency and country risks,’ said Stephen Haddrill, chief executive of the FRC.
Issues to be considered include: direct or indirect exposure to country risk through financial instruments, foreign operations, and trade with customers and suppliers, as well as the impact of government’s austerity measures on financial forecasts and going concern considerations.
