The wildfires that ravaged our state last year were an unfortunate reminder that California businesses must always have a business continuity plan to be prepared for natural disasters. The 2018 wildfire season was the most destructive and deadly in our state’s history, causing more than...
Many mid-sized firms in the U.S. have invested heavily in finance, treasury and risk management systems to enable the finance department to provide directors and CEOs with mission-critical information. It appears, however, that finance departments — and CFOs, specifically — are not consistently delivering the kinds of information and decision-support...
Have you given much thought to what would happen to your business if you were to unexpectedly die or become disabled and no longer able to run things? Many owners of small and mid-sized firms haven’t — and this can end up being a huge mistake if one...
It’s not uncommon for owners of companies that have survived the startup phase and become a viable operation to exhale and let their guard down a little bit. After all, they’ve made it through what is often the most difficult part of entrepreneurship: Getting a new venture off the...
At the height of the Cold War back in the 1980s, President Ronald Reagan used a term that described his views regarding U.S.-Soviet relations and missile disarmament: “Trust, but verify.” Los Angeles and Southern California business owners and entrepreneurs would do well to take these words to heart when...
As we discussed in a recent article, it is critical for Los Angeles and Southern California business owners and entrepreneurs to find the right balance between the financial and operational sides of their companies. It is especially important that the goals and objectives of finance and operations be linked...
Los Angeles and Southern California business leaders face many different kinds of risk when it comes to running their companies. Of course, the very idea of owning and managing a business entails assuming a certain degree of risk. While the risks involved in running a business can’t be completely eliminated,...
Every few months, it seems, a major natural disaster strikes somewhere in the world — reminding everyone how vulnerable we can be to the whims of Mother Nature. Most recently, it was super storm Sandy, which paralyzed much of the northeastern U.S. for weeks. And here in California, of...
Risk is involved in every aspect of life, but business leaders and entrepreneurs usually deal with a higher degree of risk than most people. Starting and managing a business is inherently risky, of course, and most business executives try to take prudent steps to reduce the risks inherent in...
In some industries, stress testing is now mandated and is becoming formalized. In 2012 the Federal Reserve Board is requiring 31 U.S. bank holding companies with assets of more than $50 billion to submit capital plans and undergo stress testing under Comprehensive Capital Analysis and...