16 Dec A STAR STORY – DIRECTORS BEWARE; INCREASING INSOLVENCIES
Welcome to this week’s round up of insights and commentary, brought to you by Team Cannings.
A STAR STORY – DIRECTORS BEWARE
Company directors have been put on notice about the need to be ever vigilant when it comes to risk after the Australia Securities and Investment Commission (ASIC), launched its first legal case in a decade against individual directors.
The corporate watchdog this week announced civil proceedings against 11 directors and executives of casino giant Star Entertainment for alleged breaches of director duties and anti-money laundering laws, sending a strong message that poor culture and governance will not be tolerated.
Talk about a pre-Christmas cracker …
As the Australian Institute of Company Directors’ CEO, Mark Rigotti, told the AFR, directors should be aware of all key risks in their sector – and continually probe management to check how they’re being addressed.
Governance Institute chairman Pauline Vamos suggested that boards need to start setting aside time for these types of discussion at every meeting and to crosscheck any operational reports against risk event reports.
INCREASING INSOLVENCIES
Closing down sales and for lease signs in shop windows might be more common next year with the number of business insolvencies expected to nearly double.
Jason Preston, chairman of advisory firm McGrathNicol, says climbing interest rates combined with an expected slowdown in consumer spending will put the squeeze on construction, manufacturing, and discretionary retail companies in 2023.
While he predicts the number of insolvencies will get back to pre-covid levels, Preston says it’s harder to know if that’s just reflective of the economic slowdown or if there’s a real liquidity decline, not too dissimilar to the financial crisis of 2008, when businesses were struggling to refinance.
Only time will tell…
A SIMPLE PRESCRIPTION
Jargon is the bane of anyone seeking clear, concise information and yet it still permeates workplaces everywhere – including doctors’ consulting rooms (which is probably not really where you want any misunderstandings to arise).
A study by the University of Minnesota found doctors are a dab hand at dispensing medical jargon to patients, many of whom are often left unnecessarily confused.
While most participants (96 per cent) knew that negative cancer screening results meant they didn’t have cancer, fewer (67 per cent) knew that positive lymph nodes meant the cancer had spread, and only 21 per cent correctly understood that a clinician saying their radiography was impressive was generally bad news.
COMMUNICATIONS TRENDS 2023
As the end of the year fast approaches, we are already thinking about what communications trends will shape 2023.
Cannings Director Amy Piek gets out her crystal ball to see what’s in store for communicators in the new year.
Read her top five predictions here.
SEE YOU NEXT YEAR
This is our last newsletter for 2022. Our office closes December 22 for the festive break, reopening on January 9.
Our newsletter will resume in late January.
In the meantime, thank you for your support this year.
Wishing you a wonderful and safe holiday season, from the Cannings Team.
Feel free to share these updates with colleagues or friends. They can sign up here to receive our daily newsletter.