Small Spark

The risks of spreadsheet use do not just come from the misuse of formulae. As such, training needs to go beyond this technical aspect of spreadsheet use and look at the spreadsheet in its full business context. While standard training is by and large unable to do this, task-based training is perfectly suited to a contextual approach to training. 1 THE SITUATION 1.1 What Are The Risks Of Spreadsheet Use? The main risks associated with spreadsheet use are the prevalence of errors (which can cause inadvertent error and make fraud harder to detect) and the gross misuse of time by spreadsheet operators (designers, users, etc.). The effects of spreadsheet errors are well documented: bad decision making, noncompliance, ease of fraud etc. “The biggest fear for organisations is losing data or suffering losses due to unchecked inaccurate data.” [Baxter, 2007] It has been reported that as many as 90% of spreadsheets contain errors and that many of those errors can be critical to business [Bewig, 2005]. The EuSpRIG website [EuSpRIG] contains many reports of specific instances of business loss due to spreadsheet error. The effects of time-wasting are not as well documented, as they hit businesses in a more indirect manner. However, staff productivity is definitely affected by fighting an unfriendly system and by wasting hours doing things a long way. This waste can cost money. 1.2 What Are The Causes Of These Risks? There are two levels at which spreadsheet errors occur: the user level and the business level. User Error We all make mistakes regardless of whether we are designing, auditing or using a spreadsheet system. While natural human error cannot be eradicated by training, an awareness of possible errors can assist with detection and remedy [Purser, Chadwick, 2006].