BDO and Governance: Options and Issues

Running Head: CORPORATE GOVERANNCE
BDO and Governance
Options and Issues

CORPORATE GOVERANNCE 2
The organisational structure of a company describes the flow and direction of activities in
order to accomplish aims of the organization as well as assures the growth of the company
BDO is an international system that provides accounting services, tax and business
consultative services to the firms functioning professional services under the supervision of
BDO. BDO is abbreviated as Binder Dicker Otter having its member firms in more than 162
countries and it has headquarter in Zaventem, Belgium. BDO Global is one of the top five
organisations providing professional accounting services with more than 1500 offices all over
the world. BDO along with its partners employ nearly 75000 employees across the globe and
has announced global revenue of nearly $8.1 billion in the year 2017. This essay focuses on
the organisational structure of the firm, internal and external environmental factors, existing
risk factors, the steps that should be taken to enhance the business and key functions assisting
the achievement of strategy (Kingdom, 2015).
The BDO Global is administrated by the Council, the Global Board and the Executive of
BDO International Limited. Council involves one representative from each voting member,
and signifies the members of BDO International in annual general meeting. The Council is
responsible for approving BDO and its network’s budget and conducting changes in the
Regulations and Articles of Association of BDO International Limited. BDO consists a range
of global committees who are responsible for reporting directly to the CEO and particular
member of the Leadership Team. International committees of BDO are named as Executive,
Board Audit, Compensation, Corporate Governance, Nominations, Risk management, Trust,
IT Steering and Related Party Transactions Committee. The number of members in these
committee can be decreased and increased by the board as per requirement. Along with this,
to simplify the coordination and communication of tasks, BDO is also separated in three
regions named as EMEA (Europe, Middle East and Africa), Americas (Latin America,
Caribbean and North America) and Asia Pacific. These are facilitated by individual regional
board which meets with the Global Board once in a year (Global, 2018).
Being a financial organization, BDO trusts that right of participation and ethical behaviour
motivates the strength and assurance of the investors and partners. Since industry of
accounting and financial services provider is categorized by regular changes in environment
because of rules, regulations and laws, BDO also have various external and internal factors
that effects its working. The major external factors are pricing structure prevailing in the
market, presence of internet facilities, community involvement, quick changes in information
technology, changes in governing compliance, disaster management, and economic recession.

CORPORATE GOVERANNCE 3
For the purpose of community involvement, management should focus on branding its
services in context with customers view (Maverick, 2018). It will help in increasing customer
base and also increase in profitability of the firm. Along with this unusual expectations of
customers with limited resources in one of the important business affecting aspect because
management has to fulfil the demands of customer without any excuses. This consumes a lot
of time and other important tasks get delay in this process (Burbidge, 2016).
Similarly internal forces that impact the business of BDO, are management of safety &
security, effectiveness of internal control system, internal relations of employees as well as
management and working atmosphere within the boundaries that affect the working
capability of the employees. Successful management of confidential information of the
customers is one of the major inter factor and responsibility of the firm. In order to successful
application of strategies, both internal as well as external sources should be well managed
and linked to each other. For this purpose different strategies are required to be formulated in
accordance with the impact environmental factors. Therefore, the mission and objectives,
value system, financial factors and internal relationship get impacted as a result of external
and internal environmental forces (Organisation, 2018).
BDO facilitates organisations to achieve consistent performance and reliable improvement in
their operations by assisting optimisation of business procedure and services development. In
order to increase productivity and reducing cost, management of BDO has to face a number
of risks prevailing at present. One of the main of those factors are breaches or theft of private
and technology security, which may result into loss of financial data of its member
organisations (SimpliLearn, 2018). Fluctuation of stock and revenue, diversification of
products, war, natural disasters and terrorist attacks are some factors which may lead to
failure execution of corporate strategy. While the U.S. government is observing a controlling
renovation, a bunch of compound regulations and procedures can surely create a concern for
the organisation. Beside this, increasing competition is the biggest risk associated factor
which includes market sharing and struggle for contracts as well as to retaining and
fascinating the talent (Sand, 2016).
Management of BDO can take various actions in order to enhance the performance of the
organisation. The first step should be taken by the management is improving the class of
accounting services and the positioning of accounting properties. For this purpose, more