FINANCE TOOLBOX
FOR COVID-19 AND OTHER CHALLENGES
COVID-19 poses unprecedented challenges: the finance toolbox supports your organization in the difficult times ahead.
STEP 1: EMERGENCY LIQUIDITY MANAGEMENT
Cash, Cost, Net Working Capital
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Cash forecast for 6-12 month
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Identify payables to be delayed and receivables to be accelerated
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Assess ability to get access to relief funds or additional external funding
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Identify cost saving potential
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Monitor net working capital available to avoid insolvency filing requirements
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Closely monitor debt covenants and enter into restructuring discussions early
STEP 2: FINANCIAL AND
BUSINESS PLANNING
Planning
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Update or develop a mid-term business plan and financial model using scenario planning and Monte Carlo simulations - a useful tool to quantify the uncertainty of COVID-19 variables.
Alternatives
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Identify alternatives! What if ...? What if we redeployed existing resources? What if we source in alternative ways? What if we offer alternative products? Etc.
STEP 3: STRATEGIC REVIEW
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Strategic review of capabilities and resources in line with the new situation: can idle resources be used to identify new business opportunities or improvement potential? Can additional customer value be generated? Can different services be offered?
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Is digital transformation required to succeed in the "new normal"?
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Does the portfolio need restructuring? Which entities should be strengthened, which ones divested?
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Is governance strong enough for crisis?
