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Success is impossible for an organization without management or controls

Success is impossible for an organization without management or controls

The examples of Wirecard and in the Argentine Republic itself with the departure of the Chief of Staff. The failure of governance and Studies on Corporate Governance.

Mariano Fuchila

Organizations, whatever their nature, political, for-profit or non-profit, inevitably require management and control for their success.. It is observed in Argentina – and in the world in general – that they, especially the new ones, concentrate their energy on management, but neglecting key control mechanisms, usually due to ignorance or the belief that the lack of these – and its corresponding inefficiency or loss due to fraud – is a cost calculated within the result.

This bias has led companies to literally disappear, and states to make countless mistakes that stain their credibility.. To illustrate with two recent cases, we have, for the first, the bankruptcy of the German Wirecard due to lack of accounting control, and, for the second, what happened with the current administration of the Argentine Republic, where the outgoing chief of staff authorized salary increases contrary to the presidential austerity message.

In both examples, as in many others, governance failed, understood as the control processes to ensure adequate management aligned with the strategic objectives of the organization. These processes involve professionalized risk management methodologies, structure design, job descriptions, compatibility of functions, processes and controls, communication and evaluation mechanisms.

University Governance Programs

The Argentine Social Museum University, founded in 1956 and inspired by the Social Museum of Paris, has been developing and consolidating Executive Governance Programs in its Business School. In an environment where professionals from various organizations attend, knowledge about the discipline is discussed and disseminated both online for individuals and from within organizations that wish to improve their practices. It currently has the Labor Inclusion Skills Development programs (to be taught starting next June 4), Comprehensive Compliance®, Crypto Compliance, Compliance Focused on Cybersecurity, Criminal Compliance, ESG and Tax Compliance. To learn more about them [email protected]

Source: Ambito

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