A Glance at Employees Funds in Colombia

Abstract

This paper aims to develop a study of the administrative variables that employees’ funds implement in Colombia. This analysis arises from the application of business assessment tools that provide a broad view of the administrative processes involved in this type of solidarity sector organizations at a national scale. Findings from this analysis make it possible to establish the following factors as the most important: (1) the existence of an important number of internal administrative factors that significantly affect risk management of Colombian employees funds; (2) a scattered legal and institutional framework, constantly changing and with little emphasis on the use of administrative controls to prevent possible risks, and (3) the limited application of standards in key management areas, a factor that has contributed to the failure of several of these institutions in the past. Ultimately, this analysis allows the achievement of an overview of the business management that employees’ funds develop in Colombia. It is a reflection of the poor implementation of standards and management processes from this kind of organizations.