Surviving COVID-19 business threats
The Coronavirus has presented a significant business challenge to companies and organisations around the world. Many businesses are having to test their preparedness in real time as they evaluate the potential impact it may have on of their operations, supply chain and employee well-being.
Businesses will need to traverse three phases in dealing with the COVID-19 fallout.
REACT - The way in which businesses respond to the initial impact of the COVID-19 Crisis, minimising the catastrophic effects on its business operations, employee safety, supply chain and ongoing financial viability.
There are a number of areas of a business that may be impacted by the COVID-19 outbreak during the React phase. For each area, there are appropriate actions you can take to mitigate the impact and manage associated risks.
- Sustainability: Businesses know that in times of impacted revenues and profitability, ‘cash is king’. It is critical for many businesses in the short term to maintain cashflow and liquidity – and to establish practices that will provide the basis for a rebound when conditions improve.
- Operations: The impacts on physical operations, markets and suppliers has potentially devastating consequences. Businesses need continuity strategies such as Work-From-Home (WFH), while managing specific operational risks exacerbated by COVID-19 (e.g. cyber security risks).
- Health & safety: The physical and psychological wellbeing of business’ employees, customers and key stakeholders becomes critical during major health crises like COVID-19. A well-rounded people strategy will provide a strategy that addresses the range of health and well-being effects on teams.
- Supply chain: COVID-19 has closed borders, and impacted imports, exports, and access to markets. A resilient supply chain is critical for businesses to continue to provide goods and services to customers.
View BDO’s COVID-19 webinar series.
Need help? Step plan for businesses impacted by COVID-19
This crisis will pass and we expect economic activity to return quickly once it does, but businesses need to ensure they come out the other side. We recommend clients follow a 8 step process to ensure best prospects for managing through this business crisis.
Coronavirus (COVID-19) Business impact and risk response guide