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Why are management always interested in Internal Controls when there is a failure?

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تم إضافة السؤال من قبل Ismail Mamoojee , Group Compliance Officer , Liberty
تاريخ النشر: 2014/11/23
Shah Azam Aramco Approved
من قبل Shah Azam Aramco Approved , HSE SUPERVISOR , HANWA E&C Offshore Installation Team 2

Failure can cause because of Internal Miss-understanding or Miss-communication, and that is always internal, because when you lunch a product to try your best to give best but Consumer are best Judges, and when they report problem you must review the entire process from idea till finishing product.

 

Bilal Hussain
من قبل Bilal Hussain , Business Development Manager , Rust-Oleum Brands

Every one tries to reach the root cause of failure and thats what management do. In internal controls, every influncable factor can be managed and controled but in external environment, influmcable factors on failure, are not completly controlable. And the gravity of external influncable factors can be dessolved by controlling internal factors. That is why every good management is keen in internal controls when there is failure.

Akram Chowdhury
من قبل Akram Chowdhury , Assistant Executive , BSA Group of Companies

Management always emphasis on internal control to reduce production cost & enhance profit, ensure value of work, satisfactory work environment, ensure justice on the employee.

Mohammed Hussain Shah
من قبل Mohammed Hussain Shah , Finance Manager , Al-Naba Contracting Co. Ltd

The management is interested in strengthening the internal controls to avoid  or minimize failures. A failure is an indication of a weak internal control system and alerts the management to take appropriate measures to improve the same suited to its size, culture and working environment.

Mohamed Abd Elfattah
من قبل Mohamed Abd Elfattah , Electrical Design Engineer , AL-HARBI Consulting Engineers

To increase manufacturing value added (MVA) and decrease the manufacturing cost

Bilal Naeem
من قبل Bilal Naeem , Assistant Manager Assurance , RSM Bahrain

The proverb "A burnt child dreads the fire" explains it all.

 

However, in my experience internal controls have never received their fair share of attention, primarily because it is considered as a defensive support activity that results in an incremental fixed cost and therefore avoided until as you said "when there is a failure".

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