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The Chartered Secretary 1

ContentsIssue 2/2017

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The Chartered Secretary

DIPLOMA IN FORENSIC ACCOUNTING (DFA)

( A c c r e d i t e d b y t h e M i n i s t r y o f H i g h e r a n d T e r ti a r y E d u c a ti o n , S c i e n c e a n d T e c h n o l o g y D e v e l o p m e n t )

Duration

: 1 ½ years - Block Release / Weekend Classes

Entry Qualifications : IBAS Intermediate Diploma in Business and Accounting Studies or equivalent

: Appropriate University degree

Exemptions

: Exemptions will be awarded on a subject for subject basis to holders of

recognised qualifications

For Admissions and Information please contact:

Institute of Chartered Secretaries and Administrators in Zimbabwe

P O Box CY 172, Causeway, Harare

Tel: 04-700553-5 , 700631/5, 08644 124 596-9; Fax No. 04-700624

Email: [email protected]; Website: www.icsaz.co.zw

ICSAZ: KEY TO CORPORATE SOLUTIONS!

INSTITUTE OF CHARTERED SECRETARIES AND ADMINISTRATORS IN ZIMBABWE

(A constituent member of the Public Accountants and Auditors Board (PAAB) and a member of the Pan African Federation of Accountants (PAFA))

Who should apply

How to apply Corporate Secretaries

Accountants

Risk and Loss Control Officers

Internal and External Auditors

Investigators

Fraud and Anti-Corruption Investigators

Registration details and application forms are obtainable from Dzidzo House offices or through email ([email protected]) upon assessment

of your certified copies of educational certificates. Two certified Zimbabwean passport sized photographs are to accompany the appli-

cation form together with certified copies of educational certificates, transcripts, Birth certificate, National ID and proof of payment of

the Application fee.

Closing date for receipt of application forms is Friday, 19 May 2017.

Enrol Now

INTROD

UCING

ICSAZ

AFFILIATE SCHEME

BE AN ICSAZ

AFFILIATE

Invitation to those

who do not possess

the ICSA Qualification

Benefits of being an Affiliate:

Free subscription to ICSAZ’s quarterly Chartered Secretary Magazine;

Free access to ICSAZ’s Technical Newsletter and Updates;

Access to technical e-query services;

Member’s rate for all ICSAZ publications and material;

Member’s rate for Continuous Professional Education Development programmes organised

by ICSAZ;

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Opportunity to pursue ICSA (subject to qualification)

For Inquiries Contact ICSAZ at Dzidzo House, 22-32 McChlery Avenue, Eastlea

PO Pox CY172, Causeway

Harare

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Issue 2/2017

Inside this issue

» Chartered Secretaries challenged to promote

ethical leadership

» Excel in everything, graduates told

» Negotiating requires thorough preparation

and skill

» Risk management is key for business survival

and success

Dr Paradza

Paradza

elected

ICSAZ

President

O� cial magazine of the Institute of Chartered Secretaries and Administrators in Zimbabwe

Risk Management

Student Supplement

12

14

Risk management is key for business survival and success

Understanding exam requirements should yield better results

Profi le11 Studying with ICSAZ is an investment, says

Masvingo City Treasurer

Institute NewsDr Paradza Paradza elected ICSAZ President

Chartered Secretaries challenged to promote ethical leadership

Excel in everything, graduates told

Believe in your ability to achieve your goals, despite challenges, ICSAZ graduates told

2

4

5

6

Negotiating requires thorough preparation and skill

8Negotiating

2 The Chartered Secretary

Institute News

Dr Paradza Paradza elected ICSAZ President

Dr Paradza Paradza, who is ITRite Solutions Managing Consultant and a member of the

Securities Commission of Zimbabwe board, has been elected President of the Institute of Chartered Secretaries and Administrators in Zimbabwe.

Grain Marketing Board Pension Fund Chief Executive Offi cer Taona Munzvandi and Baines Avenue Clinic Finance and Administration Director Letitia Gaga were elected Vice-Presidents at the Institute’s annual general meeting.

Dr Paradza is a seasoned Information Communication

Technology (ICT) professional with more than 20 years of international and domestic experience in managing and leading teams and ICT projects in the banking, manufacturing, mining, telecommunications, education and consulting sectors.

He holds a Doctor of Philosophy (PhD) degree in Business Administration and Master of Business Administration degree from Preston University in the United States of America. He also holds a Bachelor of Business Studies and

Computer Science degree from the University of Zimbabwe.

Dr Paradza is an Associate of the Institute of Bankers of Zimbabwe and a Fellow of the Institute of Chartered Secretaries and Administrators in Zimbabwe.

He was elected to the ICSAZ Council in 2013 and served on the Institute of Business and Accounting Studies (IBAS) Education and Council committee, serving a term as chairman of each of these.

He has served on the ICSAZ Legislation and Technical committee where he was Chairman from 2015 to 2016. He has also been a member of the ICSAZ Executive, Finance and General Purpose Committee (EXCO) since 2015.

As Chairman of the IBAS Education and ICSAZ Education committees, he oversaw the review of the curricula of both qualifi cations. He has been a member of the Examination Assessment Review Panel since 2012. He also served as Vice-President of ICSAZ from 2016 to 2017.

Dr Paradza has worked for a number of organisations as Head of ICT Divisions or Head of ICT Projects.

He has worked for the Government of Zimbabwe, TelOne, Ashanti Goldfields,

Dr Paradza


Dr Paradza Paradza elected ICSAZ PresidentTurnall Holdings, FBC Bank, CBZ Bank and MBCA Bank. He is currently the Board Chairman of Murambinda District Hospital. He is also a former lecturer and examiner in some local universities and institutions.

Dr Paradza is an active Catholic, married with three daughters and a son. During his free time he enjoys watching soccer, travelling and reading.

Vice-President Munzvandi is the founding Chief Executive of the Grain Marketing Board Pension Fund. He holds a Bachelor of Accounting and Computing Science (BCompt.) degree from the University of South Africa and a Master’s degree in Business Administration – Finance from the University of Zimbabwe.

He has a Certificate of Proficiency in Trusteeship from the Zimbabwe Association of Pension Funds (ZAPF). He is a Fellow of the Southern African Association of Accountants and a Fellow of the Institute of Chartered Secretaries and Administrators in Zimbabwe. He is a member of the Public Accountants and Auditors Board (PAAB).

Mr Munzvandi has more than 24 years’ experience in the pensions and insurance industry. He has worked for Fidelity Life Assurance as a Senior Claims Clerk and for the Mining Industry Pension Fund as a Senior Officer and Assistant Benefits Manager.

He has also worked in the Comptroller and Auditor General’s office as a Senior Auditor.

He is a Vice-Chair-man of the Prison Fel-lowship of Zimbabwe and a member of the Board of the Zimba-bwe Association of Pension Funds.

Mr Munzvandi is also a facilitator and presenter at AMC International Pension Fund Conventions in East and Southern

Africa as well as a facilitator at Premier Knowledge Centre Consultants in South Africa.

He is an active member of the Anglican Church. He enjoys playing golf during his free time.

Vice-President Gaga is a seasoned financial expert. In addition to being the Finance and Administration Director for Baines Avenue Clinic, she chairs the clinic’s Pension Fund Board of Trustees and is a member of various board committees. She has more than 20 years’ experience in both public and private sector finance.

Her core areas of competence include organisational development, leadership and management development, employee relations and investment promotion.

Mrs Gaga holds a Master of Business Administration degree from the University of Zimbabwe. She also holds a Diploma in Transformational Leadership and Leadership for Women from the Success Motivation Institute.

She is a Fellow of the Institute of Chartered Secretaries and Administrators in Zimbabwe and a past Chairperson of the Institute’s Harare Branch Committee.

She is an Associate Member of the Institute of Municipal Finance Officers (IMFO), South Africa.

She is a member of the Board of the Private Hospitals’ Association of Zimbabwe.

Mrs Gaga chairs the ICSAZ Corporate Governance Panel and Membership Committee and is a member of the Institute’s Finance and General Purpose Committee (EXCO) and Legislation and Technical Committee.

In the past Mrs Gaga has worked as Acting Chief Executive Officer of Baines Avenue Clinic and has been Senior Accountant, Auditor and Salaries Administrator at the City of Harare.Mr Munzvandi Mrs Gaga


Institute NewsChartered Secretaries challenged to

promote ethical leadership

The newly elected President of the Institute of Chartered Secretaries and Administrators (ICSAZ), Dr Paradza Paradza, has challenged Chartered Secretaries to promote ethical

leadership to help restore above-board business operations in the public and private sector.

In an interview with The Chartered Secretary, Dr Paradza said he had adopted the theme “Chartered Secretary – Championing Ethical Stewardship” during his tenure because he felt that although many people are able to do their jobs the right way, they no longer do them ethically.

“The world in general and our country in particular is plagued by endemic corruption and greed. People in leadership are no longer serving the stakeholders but prioritising their personal needs. As Chartered Secretaries, we need to restore trust in our public and private institutions.

“We have to discharge our duties in an ethical manner. We should preach and practise servant leadership at every leadership level we might find ourselves in. We need men and women of integrity and honesty to lead in public and private institutions.

“Our resources are scarce and finite so we need to work for the common good. We urgently need a new breed of leaders if we are to rescue our country,” Dr Paradza said.

He added that, although he fully understands that accomplishing this would be a mammoth task, he felt it was important to try.

“The current state of corporate governance in Zimbabwe is disastrous. The results are now so visible that even those who are not schooled in economics and governance can see and feel the rot.

“We need to go back to the drawing board. Our internal controls and governance structures are porous and very weak, resulting in abuse of corporate and state resources.

“Where incidents of abuse are identified, there are no mechanisms to deal with the abusers and those entrusted to deal with such cases are not willing since they are the accomplices,” Dr Paradza said.

He said that while Zimbabwe had adopted its own National Code of Corporate Governance (ZimCode), adherence to it was not legally enforceable.

He said there were people with high ethical standards who had resigned from some boards of directors because they did not wish to be identified with unethical behaviour or poor corporate governance. However, the reason for their leaving was seldom made public. It was said they had resigned for some other reason, such as to pursue personal business interests.

He called on those who found themselves in such a position to not only resign, if they felt unable to bring about a change, but to be honest about the reason they had resigned.

Dr Paradza went on to say Zimbabwe’s governance structures lack independence, adding that many people in senior positions, both in the private and public sector, are appointed through either patronage or nepotism.

He pointed out, however, that a number of ICSAZ members are indeed living up to the Institute’s corporate governance ideals.

“The various programmes ICSAZ is introducing are meant to equip our members with the right skills and attitude. There is, however, room for improvement and I would want to make a clarion call to our members to continuously develop themselves.

“They have to remain relevant in this competitive environment by attending continuous professional development seminars as well as by taking up different programmes the Institute is introducing such as the Diploma in Forensic Accounting,” he said.

Looking at the year ahead, Dr Paradza said a number of projects have commenced which are aimed at establishing ICSAZ as the premier accountancy and governance institute.

“As ICSAZ, we would like to increase our advocacy voices and promote ethical stewardship. Some of our objectives will be achieved through our qualification, where the curriculum will be reviewed to reflect the ever changing corporate environment.

“The curriculum review currently underway will elevate governance to a prominent level. Our collaborative programmes will equip our members and students with diverse and in-depth knowledge to tackle the complex environments of today and tomorrow,” he said.

Dr Paradza added that an economy thrives on strong public institutions and corporates that are run in accordance with good governance tenets.

“ICSAZ has been active and is increasing its involvement in the revival of the economy. In 2013 the Institute introduced the Excellence in Corporate Governance Awards (ECGA) to encourage a culture of good corporate governance.

“The awards are now seeing State Owned Enterprises having their books audited on time, something which was rare in the past. The Institute was also instrumental in the crafting of the ZimCode.

“As part of the Government’s ease of doing business initiative, ICSAZ is actively involved in the review of the Companies Act. In addition, the Institute contributes to the making up of the nation’s annual budget,” he said.


despite having the finest brains within their establishments.

“Human creativity has increasingly become a group process. You must improve your skills on working with teams as human friction makes the sparks in the corporate world. We now live in a tough world. Low hanging fruit is diminishing and significant success can be achieved if we connect our

imaginations. “The sea of knowledge knows no

boundaries. All of us here today are swimmers in the sea, on our own continuous journeys of learning without boundaries, whether at home or at work, whether paid or unpaid, whether planned or by chance.

“Learning does not stop, especially for us professionals. This is why the Institute organises Continuous Professional Development (CPD) courses for all members and graduates and these are mandatory. We want you to remain relevant in the profession,” he said.

Mr Mahembe went on to tell the graduates that they are entering a new chapter in their lives in an exciting world, full of challenges and opportunities that have been amplified by the Internet and the social media revolution.

“Human beings are no longer rewarded most for being compliant cogs. Instead our chaotic world is open to the work of passionate individuals, intent on carving their own paths,” he said.

“That is the new job of education, not to hand a map to those willing to follow it but to inculcate leadership and restlessness into a new generation.

“The rigorous examinations of ICSA have prepared you to conquer the world. This is because ICSA as a qualification is not just academic but practical in scope. The intention is to mould a complete professional who can positively contribute to the economy and play a part in helping communities improve their quality of life.

“The world today is full of challenges from terrorism, environmental and ecological disasters, financial crises, unemployment, social unrest. With endemic corruption everywhere, the profession is at a crossroad.

“You and I must make a choice to be different. Let us go out there and change the vices into virtues. This country needs your input and you must at every stage of your professional life play your part in turning this unacceptable situation around for the sake of the generations to come.”

Institute News

Excel in everything, graduates told

ICSA graduates should strive to excel in everything they do, no matter how big or small the task, outgoing

Institute of Chartered Secretaries and Administrators in Zimbabwe President George Mahembe told graduates at this year’s ICSAZ graduation ceremony.

Dr Paradza Paradza, the newly elected President of the Institute who was still Vice-President at the graduation ceremony, read the speech on behalf of Mr Mahembe.

“As an ICSA graduate, it is not enough to simply try and get by in life. That does not move the profession forward. You must strive to excel in everything you do regardless of whether it’s big or small,” Mr Mahembe said.

“The decisions you make starting today will determine what you become. You will face many challenges but this is what the real world is all about and the next phase in your life is a great training ground for your future success.

“You must think big. Dream, based not on what is but on what might be. As a professional, you will have amazing networking opportunities by attending Institute functions. Take full advantage of this opportunity as most of us have benefitted significantly from networking in our professional lives.

“Sometimes it is important to reach out. It may be easy to remain in the comfort zone in terms of friendship circles but the best lessons in life are learnt through reaching out. Play your part in sports, cultural or other activities that enable you to expand your network,” he said.

He stressed the importance of exercise and eating healthily. It was easy, he said, for successful professionals to fail to give health and well-being sufficient priority. He also urged the graduates to be fearless.

“Do not be afraid to be fearless. We all must have goals and we will have fears about achieving them but it is how we handle those fears that determine whether or not and how quickly we get there.

“Not every project or task we undertake in life can be successful. When it is not successful, learn from the mistakes made and take the necessary remedial measures on the next project,” he said.

Mr Mahembe pointed out that a number of major organisations have failed due to lack of teamwork

Mr Mahembe


Institute News


Belief in one’s ability to achieve one’s goals is essential for success, former Institute of

Chartered Secretaries and Admin-istrators in Zimbabwe President Glovah Madzima told students at this year’s ICSAZ graduation cer-emony.

He urged them not to be discouraged by the gloomy picture of life painted in the media but be prepared to overcome life’s challenges. Their future lay in their own hands, he said.

“When you read the newspapers and watch breaking news on television, the future of humanity, in particular the world economy, appears gloomy. With almost two decades of economic downturn, the Zimbabwean economy is not better either.

“Many of our graduands today may be asking: ‘Is there hope? Is there a future?’ My word of encouragement to you is: ‘Yes, there is a future.’

“What is important is that you have taken a bold step needed to build a more promising future. This bold step is completing your ICSA qualification.

“Every module you have taken, every exam you have written and every grade you have earned have all been preparing you to face the challenges ahead.

“Do not let the world sway you from the good targets that you set yourself to achieve,” he said.

Mr Madzima said the biggest difference he has noticed between successful people and unsuccessful people is not intelligence or opportunity or resources but the belief that they can achieve their goals.

“Life does not usually follow the plans we lay out for ourselves. This results in the highs and lows of life. True success will be defined by how one handles both of these times.

“Be prepared to take on new challenges in your

career life going forward. You can take note of the limitations of the prevailing macroeconomic environment but do not let these challenges determine where you end in life. Be prepared for greater things to come.

“You are now armed with the master key to open any career door. May you also note that it is not the qualification itself that counts. It is about what you have learned along the way and what you will do with

the concepts, principles, discipline and ideas you have acquired over

the years of studying. “Your future is in your hands, no one else’s.

You have to seize opportunities as they present themselves,” he said.

Mr Madzima pointed out that it takes strength and courage for people to follow their heart and intuition. He added that they must have, within themselves, the necessary strength and courage to not only follow their hearts and intuition but also create the things that they sincerely want to create and live in alignment with their purpose.

“Whenever you feel fearful and insecure, and whenever the voice of those around you seems to be a lot louder than your own inner voice, you must follow your heart, if you believe in yourself.

“Billions of people fail to live the life they have always wished to live. They fail to realise their ambitions and give up on their big dreams as soon as they encounter the first obstacle.

“One of the strongest causes for this attitude is that they do not believe in themselves. Believing in yourself is all about being sure that you are going to do whatever you want, even if others failed or were against you.

“Many people constantly doubt their abilities,

Mr Madzima



skills, talents, opinions and numerous other aspects that make them who they are. For these individuals, a lot of precious time is wasted on this demeaning method of thinking.

“If you are looking to improve yourself, your life, the way that others see you, and the way that you see yourself, it is important to understand the importance of believing in yourself. If you miss the opportunity of accomplishing this very important goal, you will continue to miss opportunities all through your life.

“When you believe in your abilities, skills, talents, and value, you will also develop a new logic to life. You will begin to understand that for every action there is definitely a reaction. However, each reaction can be a positive and fulfilling experience,” he said.

“If you believe in yourself,” Mr Madzima added, “you will have a high level of self confidence. You will feel motivated and will begin to understand the power of positive thinking. This, he said, is the thinking that distinguishes winners from losers.

“One of the first methods of learning to believe in yourself is learning to take a close look at yourself and being able to identify the potential that you have.

“Many people experience negative situations throughout their lives which may lead them to believe that they have no value to themselves or others. Usually these thoughts are created by listening to the negative talk of others about our abilities. You must have a mentality that refuses to be demeaned, a positive thinking.

“Fear is another obstacle to believing in yourself. People can fear anything but the most dreaded thing in life by many is failure. Positive thinking overcomes fear and sends failure packing,” he said.

He said it was better to try, fail and learn from one’s mistakes than not to try at all.

“If you are able to keep in mind that failing is just another form of winning, you are creating a strong belief in yourself. This is because if you fail in the attempts that you make, you will learn from the mistakes of those attempts. However, if you never try anything at all, you will have no lessons to learn,” he said.

It was human to make mistakes and stumble and human as well to criticise, he said.

“Usually when you decide to take on a big challenge or to do something that people failed to do themselves, you will be criticised.

“Under the pressure of this criticism, some people start to doubt their own abilities and eventually give up. The few people who manage to believe in themselves and who continue moving along the path they have chosen are the ones who succeed,” he said.

He identified four guidelines for success and belief in oneself. These were learning the psychology needed to convince others, not expecting everyone to agree with one, building confidence in one’s own judgement and seeking God’s guidance and help.


Negotiating

Negotiating requires thorough preparation and skill

Negotiation has been defined as the process by which two or more parties

exchange goods or services and attempt to agree upon the exchange rate for them. It is an everyday activity with differing complexities.

Skilful negotiating improves your life. It is about give and take and a means by which people compromise and agree a way forward.

Success in any negotiation comes down to preparation, to researching and knowing the facts. Before you start negotiations be clear that you are prepared to give and take. Consider the alternatives to negotiating.

Take note of the advantages and disadvantages of alternatives to negotiating before embarking on a negotiation. Understand who you are dealing with and be sensitive about them and their situation. Aim for a win-win outcome.

Repeat business can only come from a win-win outcome. For this to work, the parties must openly share information, be sensitive to each other’s needs, trust each other and remain flexible.

Learn to deal with different cultures. The objectives and intended outcomes must be clear for you. Plan your approach to the negotiations. Also consider the variables and assess their importance to both negotiators.

Anticipate the other party’s approach and prepare accordingly. Produce a framework to guide you as you negotiate. Decide

your most important issues, as they will dictate the course of the negotiations.

Decide on the composition of the team you go with to negotiate and allocate roles to each member. Plan your negotiating tactics. Your knowledge of the other party should help in deciding the tactics you will use.

Always go into a negotiation with a concrete strategy. Treat members of the other party with respect. Do not underestimate their abilities.

When the negotiation begins get each side to state its position. Set the stage right from the beginning. It sets the tone for the rest of the negotiations. Clarify the positions of the parties. Ask questions, to establish the other party’s wants. Good questions help you to understand what you have to do to reach agreement.

Listen more than you talk. Do not interrupt the other party. Identify common ground and potential areas of difference. Try not to degenerate into an argument. Summarise the discussion.

During the negotiations process

understand the other party’s viewpoint. Recognise that your feelings and the feelings of the other party are as important as logic. Clearly state your opening position in terms of what you want to finish up with.

To be a successful negotiator, one first needs to be a good listener. Reassess your tactics. In your initial discussions be prepared to review your tactics to account for any new variables that arise.

Use numbers creatively to back up your arguments. Consider cost, price and value. Assess the value of everything through the eyes of the other party. Concentrate on the issues, not the personal characteristics or personality of your opponent.

When making proposals make sure they are summarised. Deal only in packages. Discuss single items but only present and bargain in packages. Always attach a condition or conditions to every offer. Where possible, let the other side offer the first package.

If you want control be sure to let the other party make the first proposal. Make your first package challenging but credible. Key words here include Challenging, Desirable, Credible and Assertive.

Show confidence with your opening package. Present the package assertively without being aggressive.

One of the most important issues to note when negotiating is to know when to adjourn. Use adjournment to suit the situation and to encourage agreement.

Dr Farai Musamba

By Dr Farai Musamba


Make your message appeal to the person you are trying to influence. Be aware of body language and its impact on the negotiation process. Be careful not to misread body language, especially when you take into account cultural and gender differences.

Body language that can be read includes eye contact, the eye rub, crossed arms and palm gestures.

Working on your own body language is important too. Be conscious of the first impression you create. Address people by their names and put a smile on your face. Avoid sitting directly opposite someone.

Lean forward to show engagement. Lean back to show you are listening. Do not invade people’s personal space. Flinch whenever a proposal is made to you.

Other issues to note when negotiating are language. Tailor your language. Do not use round numbers. Entice movement from the other party. To do this you will need to constantly reassess your approach by asking questions such as: How far apart are we? Where do we have to move? What do I have to do to feel there?

Use ‘If’ as the first word in every proposal you make. For example, if you do this, this and this, I will do that. If you have to concede, attach a condition. Imaginative conditions can make any concession desirable.

If you have to make concessions, make your first concessions small. Make concessions work for you. Concessions tend to be reciprocated and can lead to a quick agreement. Give yourself room to manoeuvre. Get all the other party’s demands on the table. Never assume you

Negotiating requires thorough preparation and skillbest alternative to a negotiated agreement (BATNA), which is the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached.

When closing the agreement tie it up in a package. Have a win-win mentality. Be constantly on the lookout for new opportunities to expand the ‘cake’ before sharing it. Link all your issues in the final package.

Look at the really big picture of what it is that you are about. For example there can be advantages derived from entering into an agreement, say references.

Recognise that no agreement is completely watertight. It is based on mutual trust.

Try not to say “take it or leave it”. Recognise who has the authority to agree. Overcome the objections. If you are stuck on an item change the subject and return to it later.

Probe aspirations. People who want more have more deadlocks. Ask the question: ‘Why are you risking a stalemate because of this?’ Ask for the package to be repeated. Do not make it personal. Sort out the problems, not the person.

Make your decisions based on principles and results and not on emotions and pressure. Hold your nerve and be assertive and positive. Be sure you can sell the deal. Have courage and do not be intimidated.

This article is based on an address by the ICSAZ Chief Executive and Secretary, Dr Farai Musamba, to the ICSAZ Winter School.

know what the other party wants.Get something for every

concession you make. Let the other person make the first concession, especially on the major issues. Do not go in for tit-for-tat concessions and do not split things 50/50.

If you can’t get a concession, then do your best to get a promise from your negotiating partner. Do not accept the other party saying, “Sorry I cannot concede that on principle”. Such principles usually have no foundation. Your job is to test how much the principle is worth.

Keep asking yourself the question “How much closer to agreement does this concession bring us?” If it is not much, then do not offer the concession.

If your concessions are not accepted, withdraw them. Unless your package is accepted in full, go back to the previous position and try again. Focus on solutions, not problems.

Be positive and show the other party that you will both benefit from a positive attitude. Always secure a counter proposal. Do not make a new proposal before the other party has made a counter proposal.

Always use fair procedures. A win-win outcome is dependent on both parties feeling that they have been treated fairly. Constantly compare your objectives. Constantly reassess your own objectives and those of your negotiating partner.

Keep thinking about the framework you prepared at the beginning. Recognise the significance of each new variable introduced, its cost and its worth. Decide whether a likely settlement is acceptable. Keep in mind the


TheInstituteofCharteredSecretariesandAdministratorsinZimbabweherebyinvitesnominationsforthe:

CharteredSecretaryoftheYear2016AwardWhoqualifies?

• ACharteredSecretaryandaregisteredmemberoftheInstituteofCharteredSecretariesandAdministratorsinZimbabwe

Whattodo?

• IfyouknowofaCharteredSecretarywho,inyouropinion,contributedsignificantlyinanywaytotheidealsoftheprofessionduringtheyear2016,nominatethepersonastheCharteredSecretaryoftheYear;

• Givethereasonforyournominationinlessthan200words;and• Givethenameandcontactdetailsofthepersonnominated.

SendyournominationstotheChiefExecutiveandSecretary,at

ICSAZ,POBoxCY172,Causeway,Harare

NOMINATIONSMUSTBERECEIVEDBY15August2017

ForFurtherInformationpleasecontact:TheChiefExecutiveandSecretary

ICSAZ,22–32McChleryAvenue,Eastlea,HarareTelephone:04–700553/4,700560

Fax:04–700624Email:[email protected]

Website:www.icsaz.co.zw

ICSAZ:‘KeytoCorporateSolutions’


Profile

City of Masvingo Treasurer Tandiwe Dube says study-ing for the Chartered Sec-retary qualification is an in-

vestment. While opportunities might be limited at present, the benefits of the in-vestment will be reaped as the economy recovers, she said.

An accountant by profession, Mrs Dube is an associate member of the Institute of Chartered Secretaries and Administrators in Zimbabwe.

As Masvingo’s City Treasurer, she is, among other things, responsible for the administration of the city’s Treasury Department, providing financial advice to Council and its standing committees, production of final accounts, budget preparation, budgetary control and production of monthly and half-yearly reports for the Council’s Finance Committee.

She assumed the position of City Treasurer in 2010. Before that she was Deputy City Treasurer for five years.

Prior to joining the City of Masvingo she worked for Delta Beverages in the Carbonated Soft Drinks Manufacturing Division as Management Accountant from 2003 until 2004.

From February 2002 until March 2003 she was Financial Controller for United Bottlers. She worked as Stocks Accountant and Cost Accountant at United Bottlers between 1997 and 2002. While with United Bottlers, she was instrumental in designing an effective system to monitor stores usage that led to a 70 percent reduction in stock losses.

From May 1996 to March 1997 she worked as a Systems Accountant and, for a year, as Ledgers Accountant for the Zimbabwe Electricity Supply Authority (ZESA). Prior to that she was an Assistant Accountant with ZESA. She also worked as Accounting Assistant at the Ministry of Finance.

Apart from her Institute of Chartered Secretaries and Administrators qualification, Mrs Dube holds a Bachelor of Accountancy (Hons) degree from the University of Zimbabwe and a Master of Business Administration (MBA) degree from the Zimbabwe Open University.

She attained her Chartered Secretary qualification in 1994 while she was working at ZESA.

Mrs Dube said she decided to study for the ICSA qualification, known at the time as CIS, because of the recognition accorded those who had it or even were just

studying for it. “I was motivated to pursue CIS by

colleagues who were already studying CIS and were receiving recognition where they were working.

“I had been told that it was a difficult course but also that employers sought those who had successfully completed such a difficult course. I had a knack for going for the difficult things so I chose CIS,” she said.

“Since I qualified I have not had any regrets, mainly because CIS is

an international qualification, widely recognised and a noble and respected professional qualification.

“I have had opportunities in both the private and public sectors in different capacities as a result of this qualification,” she said.

She said she had found the qualification handy when working in industry.

“The qualification in itself contributed in moulding the professional being in me. In our studies we did not have the spoon-feeding that is commonly found elsewhere.

“Studying for CIS forced me to understand issues. As a result, when I encounter difficult situations in the work environment I improvise solutions,” she said.

The same applies, she said, to her colleagues, who had been equally successful and were currently in respectable and rewarding positions in the public and private sector.

Mrs Dube said she had started the process of developing her own enterprise, which would create employment for many soon.

“The qualification has given me the boldness to stand on my own,” she said.

She expressed particular appreciation for the tenets of good corporate governance instilled in her during the CIS training, which she said were making a difference now.

She said the training in itself created a desire to pursue and champion good corporate governance. Good corporate governance, she said, is every Chartered Secretary’s trademark.

Mrs Dube has been an active member of the Institute, particularly at branch level. Up until 2015 she was a member of the Masvingo Branch Committee.

Studying with ICSAZ is an investment, says Masvingo City Treasurer

Tandiwe Dube


Risk Management

Risk management is the process of identifying, analysing and controlling risks

that may threaten the operations, assets and responsibilities of an organisation and of responding to risk factors throughout the life of a project.

It implies control of possible future events. It is proactive rather than reactive. Managing risk is a key component in the ongoing survival and success of any business, no matter how large or small.

To manage risks effectively, businesses need to develop and implement a comprehensive risk management plan that identifies and prioritises all potential risks that could have an impact on the business and puts processes in place to treat, control and minimise those risks.

The purpose of risk management is to identify possible risks, reduce or allocate risk, provide a rational basis for better decision making in regards to all risks and plan ahead.

Potential benefits of risk management include compliance with legislation and regulations, improved corporate governance and a better understanding of risk associated with opportunities.

Understanding and avoiding or reducing operational risks results in avoidance of disasters, reduced costs of incidents, improved health and safety and quicker recovery from emergencies. Improvements in both internal and external risk reports and communications are realised as well as an increase in stakeholder satisfaction and a possible decrease in borrowing costs.

Business risks can generally be broken down into five categories. These are:• strategic risks associated with operating in a

particular industry;• compliance risks associated with compliance

with appropriate laws and regulations;• financial risks associated with the financial struc-

ture of the business, including business transactions and finan-cial systems;• operational risks associated with the operational and adminis-trative procedures of the business; and• market or environmental risks which the business has little or no control over such as major storms or other natural disasters, changing economic conditions and supply chain issues.

New and emerging risksOne of the challenges of risk

exposures is the identification of new types of risks. Risks do not

stay constant with time. The major impact of present risks might alter as changing circumstances continually emerge.

This is inevitable as knowledge expands, technology advances, social and legal systems alter and human behaviour changes. Examples would include technology risks, such as cybercrime, identity theft and drone activity.

Changing or extreme weather patterns, such as global warming, floods and heat waves are a cause of new health risks as well.

Five steps to creating your risk management plan

To create a risk management plan tailored for a particular business, the following steps should be taken:

1. Identify and prioritise risks What are your risks and how likely are they to

occur? Some risks could cause major disruption while others may only be minor. Prioritise each risk by assessing both its likelihood and potential severity.

2. Minimise or eliminate risks After identifying and prioritising risks, either

eliminate or minimise those risks where possible. Develop specific strategies for minimising the

By Dr Lucky Mlilo


Dr Lucky Mlilo



risks for each category.

3. Identify who has to do what in a disaster Identify responsibilities for individual personnel

in your business should you need to enact your disaster plan or manage a particular risk event.

4. Determine and plan recovery contingencies Recovery contingencies should be determined by

the type, style and size of your business and by the extent of the damage. For example, you may need to arrange temporary business relocation, change suppliers or hire replacement equipment.

5. Communicate your planAn effective risk management plan normally works

using the top to bottom approach. A culture of risk management is developed at board level. Then all staff, suppliers, contractors and service providers should be made aware of the strategies that have been put in place to either mitigate or recover from a disaster or other risk event.

In preparing for a disaster or other risk event, decide whether you will communicate to all those affected via phone, email, text or by other means. Create and document procedures and inform relevant people. Train staff and ensure everyone understands and prepares for what is expected of them in any particular situation.

Some of the more common risks that can affect small businesses include breakdown of machinery and equipment, failure to comply with regulations and other compliance issues, and high staff turnover or loss of a key staff member, especially if he or she has unique skills.

Others are security of data and intellectual property, theft, safety of people, increased competition, bad debts and negative cash flow.

Natural disasters such as fires and storms, issues relating to internet connectivity, internet fraud and scams, insurance coverage and the consequences arising from lack of innovation also affect small businesses.The risk response generally includes:• Avoidance – eliminating a specific threat, usually

by eliminating the cause.

• Mitigation – reducing the expected monetary value of a risk event by reducing the probability of occurrence.

• Acceptance – accepting the consequences of the risk. This is often accomplished by developing a contingency plan to execute should the risk event occur.

• Continuity planning – where an organisation will anticipate an incident and prepares a plan to manage the consequences so that the incident does not threaten the survival of the organisation. Standby machines and computers, standby suppliers, detailed recovery plans and exercises for staff involved should be available.

Role of insurance in managing risksInsurance plays a vital role in managing many of

the risks that can have an impact on any business. With a comprehensive business insurance plan in place businesses can reduce or even eliminate the financial impact on the business in the event of it suffering a disaster or other risk event.

Many of the risks can be covered by appropriate business insurance. For example, the financial impact of data breaches and internet fraud and scams can be covered by cyber-insurance, which has now been introduced by some insurance companies in Zimbabwe.

Property insurance can help protect buildings and equipment. Business interruption insurance can provide a financial safeguard against the unexpected loss of profits following a natural disaster by meeting regular business expenses, including staff salaries and any redundancy payments.

Public liability, professional indemnity and directors and officers liability insurance can protect the business should it be subject to any compensation claim by a third party as a result of negligence, professional negligence or wrongful acts by any directors or officers.

Workers compensation insurance is compulsory insurance to maintain appropriate accident and sickness insurance for all employees and certain contractors engaged by the business.

This article is based on an address by Dr Lucky Mlilo to the ICSAZ Winter School in Bulawayo.


The high rate of failure in Corporate Secretaryship, which is one of our core

subjects, is cause for concern for the whole ICSA fraternity.

Candidates need to understand that there is no shortcut to passing this examination. The exam looks difficult and intimidating but there is a solution.

The areas which need to be addressed are the tuition providers for this module, the candidates’ preparedness and examination techniques.

The Institute has been playing a pivotal role in training and equipping tutors with the much needed skills to add value to the aspiring Chartered Secretaries. This is being done through arranging seminars for Corporate Secretaryship students and tutors for accredited colleges.

Students must attend lectures conducted by ICSAZ approved Colleges. This will help to ensure candidates obtain value for their money and are well equipped for the examination.

Candidates must understand why they are studying for an examination. The examiner expects students to understand the hierarchy of learning objectives.

Candidates must in all material respect demonstrate clearly the four levels of the learning objectives, in order to earn the required marks.

Level One requires candidates to demonstrate knowledge of the subject, which is acquired through the daunting task of rigorous studying.

Simple company secretarial and legal jargon must be the key aspect. If candidates tend to write William Shakespeare kind of jargon or layman’s jargon, this will not impress the examiner at all.

On Level One the examiner expects candidates to demonstrate key aspects across the whole syllabus. It is recommended, therefore, to fully cover all topics in the syllabus.

Level Two on the learning objectives hierarchy

tests understanding of concepts, principles and rules. Candidates must demonstrate that they have acquired the knowledge and understood the logic behind the concepts and principles covered.

Having gathered the much needed knowledge and having understood the concepts, then there is the important aspect of application which is the Third Level.

It is the Level Three learning objective that seems to be the main

stumbling block. Students tend to just reproduce concepts and principles from their study notes without applying them to address issues in a given scenario.

Failure to link or apply knowledge in order to address the issues in the scenario provided in the exam is suicidal. It reflects an inability to become sagacious and prudent lead board personnel.

As aspiring corporate secretaries, candidates must demonstrate the depth and breadth that is required for such a position.

Level Four in the learning objectives hierarchy comprises analysis and evaluation. Here the examiner expects candidates to use what they have learnt to analyse in detail, evaluate and make decisions or recommendations.

Most candidates seem not to take heed of these important aspects. What they are demonstrating is information overload, which is not logically sorted to add value to the organisation in the given scenario. They tend to dump all they know about a topic on their exam scripts in a haphazard manner to try to fool the examiner into giving away marks.

Mastering examination techniques is the panacea for obtaining good results. The following are a critical set of techniques that all who entertain hopes of passing this key module must take heed of.

Demonstrating your understandingCandidates are expected to demonstrate the


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Tonderai Munengami

By Tonderai Munengami



to page 16

following: Business Awareness. Candidates are expected to

read business notices and circulars in, for instance, The Financial Gazette, The Standard and The Herald. By doing so you will acquaint yourself with the proper formats and layouts for corporate communications with various stakeholders.

Flexible thinking. Questions often do not state what techniques you should be using. You need to select the appropriate technique yourself.

Strategic Awareness. The examiner will test one’s wider awareness of the environment and strategic issues that the company faces. You need to demonstrate technical awareness of regulations and statutes, as well as procedures to be taken before or after implementation of specific strategic actions.

Communication Skills. Candidates need to demonstrate a high level of ability to combine ideas and experiences in a professional manner, as well as a good style of presentation and communication skills, such as excellent report writing skills using relevant appendices.

What you write should always sound professional. You will be awarded marks for a good introduction and conclusions. You may be able to obtain marks for the format, layout, logical flow and persuasiveness of your answer.

Candidates must use the correct format for answers to the questions. A good way to end all communications is to invite further communication.

How you make your document persuasive depends on who you are and who the recipients are. If you are writing to shareholders, you should consider how much information you need to provide.

If you are trying to convince the reader that the decision is right, you should focus on the benefits. If you are apologising for something that has gone wrong, you need to reassure the readers and ensure that they are happy with the information you provide.

Identifying Key Issues. Issues are to be identified and prioritised in a logical manner with a clear rationale.

Decision making skills. It is necessary to demonstrate a high level of ability to recognise and present alternate solutions and make effective judgements in a logical and rational manner.

Logical Arguments. An ability to communicate effectively with realistic recommendations in a concise and logical manner is important.

Application of Theories/Technical Concepts. A high level of application of theories or concepts in an analytical manner in solving problems in the given organisational scenario must be shown.

Citing world examples. When emphasising certain points or aspects it is encouraged to cite world examples to help explain your ideas.

Weaknesses to AvoidIn order to earn respectable marks, candidates

should guard against common weaknesses.

Don’t be needlessly intimidated. Many candidates who sat for the May 2017 examination felt so intimidated by a question on Mandatory Offer that they forgot that some easy marks were lying on other parts of the paper.

When you face a challenge regarding something you find confusing, keep calm and proceed to other parts of the paper. Pick out all questions with easy marks on areas you are comfortable with. This will refresh your mind and allow you, after you have dealt with them, to attempt the difficult questions, this time with more composure and without feeling hopeless and dejected.

Don’t fail to provide what the question verb asks of you, e.g. advise, discuss, recommend.

Don’t report or repeat the same material in different parts of your answer to the question.

Don’t state theories and concepts, rather use them to address issues in a scenario.

Don’t quote chunks of detail from the question that don’t add value to your answer.

Don’t force irrelevances into your answers by, for example, including or applying irrelevant theories that do not in any way relate to the scenario.


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Email: [email protected]: http://www.icsaz.co.zw

BRANCH CHAIRMENHarare: Anele MaphosaBulawayo: Lifneth Moyo (Ms)Midlands: Sibambangamadhla NcubeMutare: Shepherd ChinakaMasvingo: Joseph Bemani (Dr)

CHIEF EXECUTIVE AND SECRETARY:Farai Musamba (Dr)

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Don’t focus narrowly on one area.

Don’t let your personal views prevent you from answering the question. The question may require you to construct an argument with which you personally don’t agree.

Vague recommendations need to be avoided, e.g. instead of saying directors need to avoid conflicts of interest, you should discuss precisely

how they would avoid conflicts of interest.

Don’t fail to answer sufficient questions.

Avoiding common weaknesses and being aware of what examiners are looking for and what is needed to demonstrate a good understanding of what has been learnt should result in better examination results.

PRESIDENT:Paradza Paradza (Dr)

VICE-PRESIDENTS:Taona MunzvandiLetitia Gaga (Mrs)

COUNCILLORSGeorge MahembeLoice Kunyongana (Ms)Charles NhemachenaLovemore KadengeSithembile Ncube (Mrs)Sipithi Nkomo (Dr)Ferida Matambo

Understanding exam requirements should yield better resultsfrom page 15

ICSAZ MEMBERS, GRADUATES AND STUDENTS

Are you a high flyer? Have you done something worth shouting about?

Do you want people to know of the incredible success you have achieved? If the answer is yes, then send us your details and what you have done which we can use to

create a profile on you. Please send the details to:

The Secretary Dzidzo House

P O Box CY 172, Causeway, Harare 22-32 McChlery Avenue, Eastlea, Harare

Email – [email protected] www.icsaz.co.zw

contentsicsaz.co.zw/wp-content/uploads/2017/10/the...three daughters and a son. during his free time...

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