Note: In the context of the family setting, staff are the children. The personal assistant is the wife and the HR officer is the house helper. The shareholders are the Parents and all family members and relatives. The stakeholders are the family friends, neighbours and community The CEO’s Internal Memo after two weeks of lockdown is below. From: CEO To: All Staff Date: 14th April 2020 Subject: COVID19 pandemic profit warning Covid19 is a significant event for our generation. The pandemic has disrupted our way of life and it is not relenting yet until a vaccine or cure is found.…
How COVID-19 Liquidity Shock Threatens Uganda’s Financial System
Bank Financial Risk Managers in the past 12 years have been the busiest bunch recovering from the aftermath of the financial crisis of 2007-2008. These particular effects have brought about the adoption of more robust and prudent credit risk models such as the prominent International Financial Reporting Standards 9 (IFRS9) that was fully adopted in Uganda in 2018. However, these models are not cover enough when the economy is threatened to collapse in the shortest time possible. Download the Whitepaper on How COVID-19 liquidity shock could collapse the local financial system While this lockdown has not restricted banks from carrying out…
Why COVID-19 poses a bigger threat to existence of SME’s than the Financial Crisis of 2007-08
In 2008, a top investment bank the Lehman’s Brothers along with a number of financial managers and institutions collapsed following depreciation in the subprime mortgage market of the United States consequently leading to an international banking crisis. A number of top firms sought bailout to survive this crisis. Download a White Paper on Why COVID-19 poses a bigger threat to the existence of SME’s While this crisis threatened the world financial system as analysts speculated a consequent collapse, there was still coverage being provided by a number of sectors. The liquidity bubble was mainly a problem of financial service providers. Contrary…
A time for leaders to emerge
Leaders emerge during tough times, so goes the saying. All businesses and economies are facing a tough enemy with a loaded gun ready to fire. #covid19 is that enemy. No time to negotiate. You must follow the enemy’s instructions else you perish. And the instruction is #socialdistancing to reduce many cases of people infected with the virus so as not to overwhelm the health systems. The stay at home and economy lockdown orders are aimed at reducing the spread. But when will all this end and business resumes back to normal. Only if the cure is found or the vaccine,…
Covid19 Presidential Briefing: Lockdown extended for 21 days to 5th May 2020
Kampala 14th April 2020, President Y. K Museveni has announced the extension of the lockdown period for another three weeks or (21 days) up to 5th May 2020. And hopefully, by then the country shall be free of this pandemic and open on 6th May 2020. Without a vaccine yet, no one wants to take chances. The way the coronavirus has caused causalities in developed nations – specifically in the United States and Europe – Uganda’s President is right to err on the side of prevention through social distancing which has so far proved effective worldwide in reducing the fast…
From WhatsApp: An accountant and auditor at home
Quarantine effect on Auditors at home during Corona lockdown* I have realised our home & kitchen is the most mismanaged place. Following anomalies have been found, There is no stock ledger maintained. Procurement is not in line with provision factor. Purchase orders are placed verbally. Inventory maintenance is very poor. There are no budgeting documents. There is no indexing of products. No bin cards were displayed. No Annual, monthly or quarterly stock-taking has been carried out. No Inspection has been carried out for years. Most of the spoons and plates are of the wrong pattern and do not match with…
