Business Continuity Planning in a Large Retail Supply Chain Research Paper

Business Continuity Planning in a Large Retail Supply Chain - Research Paper Example Because of my current position problems with the supply chain can directly affect my work load and I want to know more about a retail supply chain and how the supply chain connections can be protected. This paper will be geared towards professionals in both business continuity and retail management. I would like the people in these professions to be able to learn from my paper the need for a better BCP for protecting a company’s supply chain. Opening Statement: Business continuity planning in large retail supply chains is not thorough enough. Large retailers that depend on outsourced supply chains are not managing their supplier risks. The Marsh Supply Chain Survey results show that no one is managing their supply chain risks very well. In fact only about 33% of them are even managing their risks moderately effectively (Hiles, 2011). According to Hiles (2011), supply chain is an all inclusive term that constitutes the management of both downstream and upstream relations with c lients and suppliers. This is desirable because it allows for timely delivery of superior client value at a lesser cost. Certainly, this is sustainable because both parties benefit optimally and are able to sustain their wellbeing through time. In order to protect this process, businesses have to look at the end-to-end supply chain process and build a Business Continuity Plan (BCP) that covers all parts of it. ... leaner business, businesses can â€Å"enhance their operational effectiveness, which essentially improves firm performance and competitiveness† (Liu, Lin, Hayes, 2010, p222). However if a business fails to manage the risks associated with running leaner than they will lose all of these benefits. By not managing their supply chain risks, large retail companies are leaving themselves vulnerable to possible business failure. Hypothesis: This research is informed and guided by distinct assumptions. To begin with, the study presumes that both upstream suppliers and downstream, consumers directly affect the continuity of the retail supply chain. Large retailers should therefore clearly analyze their contribution to business failure or success and make necessary and timely interventions. The study is also based on the assumption that current large retailers are faced with complex risks that stem from the relationships that they establish and maintain at various levels. Further, it pr esumes that inability to manage the risks effectively not only reduces efficiency but also increases the susceptibility of retailers to failure. Finally, this study presumes that relevant interventions can only be identified addressed in a timely manner through continued monitoring. From this point of view, business continuity plans are therefore vitally important. Discussion of Findings: As indicated earlier, retail supply chains are increasingly becoming more and more complex. These can be attributed to the increasing complexity of the relative relationships. Globalization trends have compelled businesses to explore various options in a bid to maintain a competitive edge. In his study, Hotchkiss (2010) found out that the complexity of the business environment has diversified the risks that

Auditing and Consulting in Accounting Firms Research Paper

Auditing and Consulting in Accounting Firms - Research Paper Example The concept of moral hazard originated in the insurance business when the insured party exhibits immoral behavior by giving out wrong information, implying an outright fraud, but this definition has since been used in economics, in a situation where there is asymmetry in the information available. One party has more relevant information or data than the other party and is therefore in a better position to take action that will insulate itself from risks, while the other party unknowingly bears the negative consequences if things go wrong or not as expected. Previously, external auditing firms were hired for their accounting and auditing skills for expertise in these matters. However, the past few decades saw the rise of many independent smaller accounting firms, causing an intense rivalry or competition for new accounting clients. A response by the big global accounting and auditing firms was to branch out into a new service, in which they profess to have management expertise, and this is in the consultancy business. In the auditing market, there was saturation and maturity, hence accounting and auditing firms started to offer integrated auditing, consultancy, and advisory services (The Economist, 2012, p. 1). This situation has an inherent moral hazard in it, because accounting and auditing firms should not provide consultancy services to the same firms that they are auditing. There is a good tendency to manipulate the books (window dressing) to enhance assets, profits, or credit rating to justify the huge consultancy fees, which is a very lucrative revenue stream for these firms. Some regulators and policymakers have doubts whether it is possible to maintain accounting integrity or professional independence in these kind of situations. This is clearly an anomaly, similar to the fox guarding the chicken coop; it has been demonstrated by the corporate