Risk Rap

Rapping About a World at Risk

Sum2 Commissions IRS Audit Risk Study

IRS Audit Risk

IRS Audit Risk

Sum2 has commissioned a survey to determine financial services industry awareness and readiness for IRS audit risk factors.  The survey seeks to determine industry awareness of IRS Industry Focus Issue risk exposures for hedge funds, private equity firms, RIAs, CTAs and corporations using offshore structures.

The survey is open to fund management executives, corporate treasury, tax managers and industry service providers.  CPAs, tax attorneys, compliance professions, administrators, custodians and prime brokers are welcome to take the study.

The study’s purpose is to determine the level of industry preparedness and steps fund managers are taking to mitigate potential exposures to IRS Industry Focus Issue risk.

The goal of the survey is to help Sum2 better respond to the critical needs of fund managers and the alternative investment management industry by improving our just released IRS Audit Risk Program (IARP) for fund managers.

Product information on IARP can be accessed here.

If you are unaware of the issues raised in this study, IRS background information can be found here.

Sum2 has also posted a series of alerts on the subject on our Credit Redi blog which can be found here.

This survey asks ten questions. The questions concern participants awareness about IFI that pertain to their fund or fund management practice. The survey seeks to determine overall industry risk awareness, awareness of potential risk exposure to IFI risk factors and any mitigation initiatives managers may plan to address IFI risk factors.   It should take no more then 5 minutes to complete the questionnaire.

Participation in this study is completely voluntary. There are no foreseeable risks associated with this project.   If  participants feel uncomfortable answering any questions, they can withdraw from the survey at any point.   It is very important for us to learn your opinions.

Survey responses will be strictly confidential and data from this research will be reported only in the aggregate.   Respondent data will be coded and will remain confidential.   If you have questions at any time about the survey or the procedures, you may contact Sum2, LLC at 973.287.7535 or by email at customer.service@sum2.com.

Thank you for your time and support.

Please start with the survey by clicking here: IRS Audit Risk Study

March 8, 2009 Posted by | hedge funds, IRS, off shore, risk management, Sum2, Tax, taxation, Uncategorized | , , , , , , , , , , | Leave a comment

Paying The Mentor

Spread Those Wings

Spread Those Wings

A recent discussion board on Linked In posed a question about mentoring.  Specifically the question asked is, “can mentoring be profitable for the mentor?”

The distinction between being a mentor and selling mentorship is an interesting question.  It is a valid distinction.  A few years ago I was required to take mentor training when I volunteered to mentor children of incarcerated parents. The sessions were conducted over the span of two Saturdays.  The sessions were fantastic and provided me with insights, resources and skills that are critical to being an effective mentor. The woman who conducted the sessions was compensated and paid by the participants and sponsoring organizations.  For her mentorship is a commodity.

It reminds me of a quote Bill Parcells made when asked by a reporter why he was getting so worked up over the loss of a football game.  Parcells answered that yes football for many is only a game but for him it was a profession.  Parcells makes a great point.  If the professional loses his passion he loses his profession. The distinction of a vocation and avocation is a question of receiving monetary or psychic remuneration.  Its up to everyone to decide what kind of treasure one stores up for oneself.

As many who have mentored know, mentors receive various kinds of compensation which may include the spiritual or emotional manna that serving and coaching others confers on the mentor.  That also applies in a corporate setting where a more senior executive is assigned to mentor and coach a younger or new company employee.   Though it may appear that the senior executive may be required to mentor as part of his job he still will be blessed with the benefit of psychic compensation that helping a mentee richly pays to the mentor.   The institutional interest is served because the mentor conveys the values and mores of the corporate culture to the new employee.   This is a critical function that all institutions need to do.   Without a shared and understood corporate ethos the sustainability of the institution is at risk.

A few weeks ago I was listening to a discussion on WNYC.   The guest was talking about how business models are radically changing.   Specifically he was speaking about Google and how it is transforming whole industries.   The “Google” revolution is seriously altering the business models of numerous industries that include advertising, newspapers and software subscription marketing to name but a few.   One of his points was that corporations need to discard the knowledge of the older workers because it was becoming increasingly irrelevant to the new emerging business practice paradigms.   Its a valid point that goes to the heart about the nature a revolution.   Total transformation changes mores and cultures.   The old has been overthrown by the new.   The implications are a difficult and scary truth to digest.    Particularly for a person like myself who has been in the world of business since 1979.

It is however written somewhere that there is nothing new under the sun.   And people who have been blessed with the experience of witnessing many sunrises have much to offer our world.   The global economic crisis has revealed a startling pervasiveness of institutional failure and the paucity of leadership.   This applies to business, politics, schools, places of worship and many communities we are part of. New leaders need to be raised up.    Mentoring people to assume positions of leadership is a critical priority of our nations recovery.

Cory Booker the Mayor of Newark NJ has stated that he believes that mentoring is one of the city’s most critical need if it is to break the cycle of deprivation, violence and cultural decay.   He is spot on.   Mentoring is an absolutely critical skill and vocation that we need to develop, encourage and commend.

President Obama in his inaugural address alluded to the passage from Corinthians “when I was a child” to implore his countrymen and women to grow into a more mature nation to meet the pressing challenges of our country and the world.   It is a clarion call for all mentors to come to the aid of their country.   We posted on this subject on Risk Rap which can be read here: When I Was A Child.

You Tube Music Video: Balam Garcia, Infant Eyes

Risk; lost generation, lost knowledge, socialization, community, civic values

March 8, 2009 Posted by | children, culture, education, teaching | , , , , , , , , | 4 Comments