Finance – the need for perceptive professionals

If the late 2001 saw the bankruptcy of Enron and its accounting partner Arthur Anderson, 2008 has seen a much more catastrophic financial tsunami hit the shores of all most all nations leading to severe recessionary pressures, a scale some would say is much worse than the great depression of 1929 to hit America and subsequently the rest of the world.

This latest financial crisis to hit the world economy has been man-made and largely due to:

1. Short-sightedness of policy makers, specifically in the US.
2. Creation of a gigantic real estate bubble, and
3. Unbridled greed among financial institutions that led to creation of exotic derivatives, of which Warren Buffet, the Sage of Omaha, said in 2003, where he compared complex derivative contracts to hell, "Easy to enter and almost impossible to exit”.

As with the Great Depression of 1929, we can expect to see fundamental changes in how financial institutions work, a slew of policy decisions and putting in place stricter regulations to protect investor wealth, particularly those who have seen their life-time savings/pensions being nearly wiped off. If the Sarbanes-Oxley Act was the result of the Enron fiasco, expect to see more such regulations enacted across global economies to regulate and control creation and trade of financial instruments.

As we recover from this financial mess, there will emerge a need for more astute financial professionals, who are not only more prudent but have demonstrable commitment towards investors who vest their faith (and money) on them.

It is in this backdrop that Globsyn Business School is shortly planning to launch a top-of-the-line International Finance Program in collaboration with the Freeman School of Business, Tulane University, whose ‘Finance’ program has been rated among the top 10 in the world, by the Financial Times. A uniquely designed one-year program, students will be tutored by faculty from Tulane University, who shall be travelling to GBS in addition to travelling to the Tulane Campus in the US to be exposed to a ‘live’ simulated trading floor.

Keep watching this space for more details on the program.

Globsyn's CEO on the Satyam fiasco

Mr. Bikram Dasgupta (Chairman & CEO, Globsyn Group) sharing his views on Satyam fiasco on 09.01.2009.

Part 1

Transcript Extracts:

>>This is definitely a one off case. In normal corporate governance it doesn't happen. It is indeed sad and at the same time very shocking that something like this has happened. I have an experience in this IT industry for 29 years now and we are proud to be what we are. Needless to say we are hurt due to this. It could be a warning signal for us that a little care has to be taken in whatever we do, be that growth, peer pressure etc.

>>Running a company of 50,000 people in 66 countries for a 1st generation entrepreneur coming from a middle class background is something new and it has become a tremendous success story. We all are learning everyday and there could be something wrong in the learning process in this case.

>>Credibility in the knowledge industry is very important. After this issue there is certainly a setback. We are all very concerned about it.

>>It is very premature to say anything about Satyam as of now. Cash flow is a big issue to manage. Most big companies have managed this cash flow and that’s why they have achieved the growth.

>>The investors in the market are very keen to see some action taken. To bring back the investors’ confidence there has to be some strong steps.

>>The future of the company will hugely depend on the people who are in direct contact with the client. If they have serviced the clients well then the client may continue to work with the company.

Part 2

>>Questioning the credit rating agencies, auditors or other regulatory authorities is valid. The situation itself has given rise to these questions. If the authorities can take visible action against the people in question, only then the investors will show confidence back.

>>It should be taken as a warning that has to be acknowledged. From my own experience I can share that after a certain point when the entrepreneurship company becomes corporatized and professionalized, the entrepreneur should make way for other skilled professionals in the Company.

>>We should also change our mind set that anything big is good. We should also respect the achievements of the smaller companies. Otherwise the smaller companies are coming under pressure to do something very big and in the process they may end up taking wrong paths. Concentration should be more on the bottom-line rather than the top-line.

>>If we can learn from these incidents then the future will be much brighter and year 2009 will certainly see a new beginning.

Coventry & Warwickshire Chamber of Commerce visits Globsyn

Globsyn Business School in one of the few B schools of India which offers quality international programs with leading foreign universities for its aspiring students. The international MBA program of the school is offered jointly with Coventry University, UK and as a part of that the ‘Coventry & Warwickshire Chamber of Commerce’ (UK) came down to Globsyn campus to have a meeting with the Chairman Mr. Bikram Dasgupta, Director Prof. R. C. Bhattacharya and other faculties & officials on 13th January. The visit was organized by the British Deputy High Commission, Kolkata.

Globsyn Alumnus becomes Top Performer

Anubrata Saha an Alumnus of Globsyn Business School has recently won the ‘Star Performer Award’ at his company ‘Reliance Money’ for being the top performer center manager trainee in the East Zone.

Congratulations Anubrata for your success…!!!