Crisis Management & Business Continuity
From our experience, the ability to respond to crises is required to ensure effective management of events while minimizing the adverse effects associated with them. While many organizations hold different contingency plans for these types of events, the unpredictable nature of COVID-19 has already revealed some flaws.
Given the unknown variables around the outbreak, it is important to test the old crisis management plans and business continuity strategy, to develop current and relevant scenarios for the current situation and to examine them as well.
- Developing specific and dynamic event management plan that addresses different crises scenarios.
- Focus on creating factual, relevant and effective communication with your stakeholders.
- Creating clear governance within the event management organization over time
- Mapping the challenges and risks and formulating a coping strategy (including working with government and regulators)
Beyond human welfare, there are other people challenges to tackle, including how to support remote working at scale.
For example, determining the tax position of people moving between countries in an emergency or companies having to plan a break in production lines because of supply chain problems, with the potential impact of asking workers to temporarily quit work.
- Build awareness and immediate readiness to respond to business implications of global mobility constraints. Review and familiarize yourself with new tax and travel laws, and human resources policy, and more.
- Evaluate and build a remote work strategy that includes considering the consequences of temporary work stoppages in the face of remote work or temporary relocation of employees.
- Directing efforts and resources to the company's IT departments to support remote work during the crisis
Where clients are reliant on supply chains in affected areas, rapidly depleting stock levels are becoming a significant risk and clients are working through strategies for alternative sourcing. In certain cases, clients are showing signs of distress and stakeholders (e.g. lenders) are concerned about the future viability of the business. We are discussing different potential scenarios and what these mean for their operations, for example, as cases of viral transmission emerge in different territories.
Finance and Liquidity
Financial markets often watch how companies plan for and respond to events like the COVID-19 outbreak.
Consider disclosures related to direct effects on the results of operations, as well as second- and third-order effects
Think about disclosures related to risks and uncertainties about the impact of COVID-19 on future periods
Assess disclosures on the current and future impact on liquidity and capital resources
Tax and trade
Local legislative changes regarding taxation and trade are key considerations in global organizations characterized by long-term business operations based on long-term relationships with global customers.
Examining the tax consequences of unexpected emergency immigration, for all stakeholders in the organization, in and out of areas directly affected by the outbreak.
Conducting tests on the effect of geographical changes on tax estimates across the globe, identifying issues that can be isolated and response points.
Review the presence and global structure of the short-term and long-term effects of the Pandemicin order to reduce exposure to the types of risks derived from the COVID-19 impact, with the intention of preventing them, as much as possible, from interrupting business operations.
Strategy and innovation
As companies move from reacting to mitigating the impact of the outbreak, strategies to emerge stronger will come in focus:
Consider accelerating digital transformations as the shift to remote working reveals gaps in IT infrastructure, workforce planning and digital upskilling
Protect growth and profitability through actions such as scenario planning, more frequent financial modeling exercises to improve resiliency, and new models that incorporate economic impacts of past pandemics
Take the pulse of your customers, thinking through longer-term considerations around shifts in core markets or business models as a result of the outbreak
Technology and Data
From our experience with working with various organisations during the Ebola and MERS outbreaks, the lack of complete and accurate information was preventing well-considered decisions being made regarding the resources needed to control the outbreak and treat infected individuals. Capturing the correct information and verifying its reliability is vital. Reliable information underpins both crisis planning and response and allows organisations to make informed decisions.
Map all issues to be considered when making a decision. Make sure that the organization stores the most complete and up-to-date information required, prior to making decisions.
Map, sort and classify your information sources and be sure to verify the reliability of the materials obtained.
Avoid wasting valuable time due to false, irrelevant or unreliable information