Maintaining the segregation between your middle and back office functions is not just an important tick in the box for audit purposes. Lesley Mitchell, Executive Director of outsourced treasury services firm ETOS, outlines the five key threats caused by key man risk.
Risk 1 – Over-reliance on one person. When treasury system knowledge and other aspects of your company’s treasury information, are locked into one person it’s like having all your eggs in one basket. If that person departs unexpectedly due to illness or a change of circumstances, it leaves the business exposed.