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
![cash_2.jpg](https://static.wixstatic.com/media/99e91f_9a53e5c81131474085fd14afa73dc1f0~mv2.jpg/v1/crop/x_44,y_0,w_1132,h_1152/fill/w_460,h_468,al_c,q_80,usm_0.66_1.00_0.01,enc_auto/cash_2.jpg)
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.
![dashboard.jpg](https://static.wixstatic.com/media/99e91f_7b296d39cfd446588a5a1b9b0c262b95~mv2.jpg/v1/fill/w_115,h_77,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/dashboard.jpg)
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?
![Robot](https://static.wixstatic.com/media/f1d5689280c6462ea92b06c169b00597.jpg/v1/fill/w_115,h_77,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/Robot.jpg)