UPDATE: Return to work updates now included – click through the themes below to see what steps your company should be considering.
The financial effects of the pandemic are reminiscent of the 2008 financial crisis, but with the stresses extended across every sector of the economy. Previously healthy businesses are suddenly coming under acute financial pressure. Without financial resilience, commercial and operational resilience cannot be maintained. Keeping this pillar strong requires firms to adapt existing financial frameworks to a more hostile, volatile environment in which access to finance and liquidity are of paramount importance, and critical cash flow risk management decisions have to be made daily.
Whilst the lockdown period presented acute cash burn pressures for most businesses as activity levels fell off, the re-start phase presents perhaps even more challenge. Mobilising to kick-start revenue growth in a trading environment that will look very different for some time could place enormous pressure on working capital. Decisions on when, how and (even) if units are to be restarted and orders accepted cannot be taken lightly. Economic history tells us that more businesses fail emerging from a downturn than going into it or during it.
KPMG’s Guide to Maintaining Enterprise Resilience has been updated to consider how businesses can prepare for their Return to Work. Below we outline some of the key steps that we believe organisations should take to maintain their Financial Resilience, if they are not doing so already.
Partner, Global Head of Cash & Working Capital
+44 7810 854152
Partner, UK Head of Debt Advisory
+44 7748 112581
Partner, Head of International Tax & Policy
+44 7786 688719
Partner, Head of Legal Services
+44 7920 711970
Partner, Head of UK Restructuring
+44 7774 617582
How do you ensure that the firm has sufficient financial resources to maintain stability in the context of commercial and operational disruption?