The Vice Chancellor of Methodist University, Ghana, Professor Ebow Bondzi-Simpson, has called for a comprehensive approach to budgeting and risk management in organisations.
Speaking at the Institute of Internal Auditors (IIA) Governance Conference on the theme: ‘Governance and Leadership: Navigating the New Wave,’ Prof. Bondzi-Simpson outlined steps organisations must take to remain relevant and effective in a rapidly changing environment.
According to him, the budgeting process should begin at the council level, focusing on the organisation’s goals, resource needs, and desired outcomes.
He emphasised that budgets should not merely be incremental from the previous year but should align with the organisation’s overall mission and strategic plan.
“Budgeting must be strategic, reflecting the financial resources needed to achieve key objectives,” he noted.
This includes identifying potential revenue streams and ensuring the budget is more than just a list of expenses, he added. “
Instead, it should serve as a roadmap guiding the organisation towards its goals.
Furthermore, Prof. Bondzi-Simpson also highlighted key risks threatening organisations today, including technological disruptions, regulatory changes, and the inability to adapt to market trends.
These, he warned, could render some organisations obsolete if not addressed proactively.
He urged organisations to closely monitor technological trends, adapt strategies to capitalise on opportunities and maintain an up-to-date understanding of regulatory requirements.
Failure to do so, he noted, could result in missed opportunities or regulatory penalties.
To mitigate risks, the Vice Chancellor recommended developing a strong risk management framework and ensuring business continuity plans are in place.
He then stressed the importance of assembling teams with the right skills and expertise to address challenges effectively.
On implementing and reviewing strategic plans, Prof. Bondzi-Simpson emphasised the need for clear mechanisms to track progress.
Prof. Bondzi-Simpson proposed regular council or board-level reviews to ensure objectives are being met.
“Organisations must have a system to measure key performance indicators (KPIs) tied to their strategic goals,” he advised.
This includes setting measurable targets and using data to evaluate progress.
The strategic plan, he noted, should be treated as a living document, regularly updated to reflect changes in the market, technology, or other external factors.
Moreover, he also called for open communication across all levels of the organisation to foster alignment and encourage feedback.
The Founder and Executive Chairman of LVSafrica Limited, Dr Alhassan Andani, emphasised the need for internal audit functions to take a proactive and strategic role in maintaining organisational integrity.
He called for digitising risk matrices and processes to enhance efficiency and stay relevant in a rapidly changing business environment.
He also stressed the importance of evaluating the composition and skills of boards to ensure they meet the organisation’s needs.
Internal auditors, he said, should not only report deviations but also educate and correct issues to uphold organisational standards and values.
Dr Andani indicated that internal auditors could serve as prosecuting witnesses in cases of financial misconduct, reinforcing accountability at the leadership level.
He underscored the need for internal audit to move beyond reactive approaches by proactively engaging in these critical areas.
The President, IIA, Mr Joseph Dakora Zumasigee, said the forum would allow participants to learn from the experiences of others and discuss global developments to improve organisational practices in Ghana.
He expressed optimism that such forums could inspire actionable solutions and help organisations remain competitive in a rapidly evolving global environment.
BY AGNES OPOKU SARPONG