Bad management 'causing majority of insolvencies'
Commercial insurance
16th July 2010
A total of 56 per cent of all corporate insolvencies in the UK are the result of bad management, new data shows.
According to a report by trade organisation R3, such cases tend to be caused by incompetence on the part of directors and professional advice could prevent failures in 40 per cent of instances.
Those seeking insurance for business may be interested to learn that the study also discovered that 74 per cent of insolvency professionals believe it can drive managers on to success and 84 per cent think it may improve business acumen.
"I have seen a good workforce let down and sometimes laid off due to management who do not admit and correct their mistakes," R3 president Steven Law warned, adding no firm can survive bad bosses and the current regime forgives those who cause organisations to collapse too easily.
In related news, the Local Better Regulation Office has announced that a national survey found efforts to reduce the burden of red tape on enterprises in the UK are "having a positive impact".
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