Building resilience to COVID-19
How businesses have responded to COVID-19 has varied greatly across organisations and industries. Some businesses have moved from rapid assessment to swift responses, with many pivoting their businesses to remain sustainable. Others have quickly managed through severe growing pains as demand for some goods and services has fast outstripped supply.
Many businesses are now asking - ‘What’s next?’
RESILIENCE - Maintaining business operations during disruption using techniques that allow people, processes and information systems to adapt to changing patterns. The ability to alter operations in the face of changing business conditions preserving the continuity of the provision of ‘critical functions’ to a firm’s customers.
There are a number of areas of a business that may continue to be impacted by the pandemic during the Resilience phase. For each area, there are appropriate actions you can take to mitigate the impact and manage associated risks.
- Financials: Understanding the economic impacts on the business will be critical in this phase. Cashflow will still be important to manage, as will understanding your funding options, your tax plans, tax deferrals and accelerating refunds. On the flip side, there will likely be many opportunities to consider as you start to gear up to phase 3 – Realise.
- Regulation & Compliance: There are many legal and compliance impacts to factor into your business response, including contracts for goods and services, regulatory relief for a range of suppliers and statutory requirements, director obligations, employee arrangements and financiers. It will be crucial to review your contracts, business insurances, ATO obligations and financial reporting requirements.
- People: Protecting your workforce will continue to be a high priority as the business returns to work. The personal well-being impacts of the effects of COVID-19 should also not be forgotten. Health and safety again features strongly, as does building on your organisational culture and internal engagement as you return your workforce to the business.
- Operations: Managing your business in this phase will be about your financial reporting as we fast approach the end of the financial year. Business process management, program and project management, contract assurance, supply resilience and managing your insurances will also be key. Operational planning, facilities management and inventory reviews will be important, as will your IT strategy and cost optimisation. There will also be workforce capability and return to work arrangements to plan.
- Mitigating Risk: Addressing risk and ensuring your business evolves to regulation, legislation and compliance will be important. Aligning your financial reporting and compliance requirements in light of COVID-19 adaptations will need to be considered. Proactively assessing your levels of risk for example, cyber security, project risk and the potential for fraud, will be critical for long-term resilience. Mitigating your tax risk will also need consideration.
View BDO’s COVID-19 webinar series.
Need help? Recovery and planning for the future
This guide is focussed on building resilience and how to recover from a crisis, offering general guidance for companies on where to focus as we begin to look beyond the initial impact of coronavirus.
We recognise that all companies and their situations are different and recommend you contact your trusted business advisers for specific advice. However, this guide will be particularly informative to leaders’ decision making processes.
Download planning guide