Coronavirus (COVID-19) information for COVID-19 for Corporate Enterprises
There are currently about 2,7m companies registered in Australia, all of whom are experiencing tremendous change, stress and intense business re-evaluation during the global COVID-19 pandemic. Approximately 2% of these companies are classified as the corporate market, accounting for 65% of Australia’s GDP. The Federal Government of Australia has a strong desire to support the business environment through this crisis as businesses directly facilitate employment and economic growth. The most recent initiative announced on 30/03/2020 includes a $130 Billion 'Job Keeper' scheme to help facilitate job retention. Read more about the various federal and state stimulus initiatives.
The COVID-19 Business Impact and Risk Response guide created by BDO to support our corporate clients provides insights across the following key dimensions:
- Supply Chain
- Health and Safety.
Read the insights on the 'Keep your business running' page to learn more of the issues we have assessed as direct risks and the proposed responses corporates should be considering.
There is also a self-assessing business evaluation tool, which our clients are encouraged to complete, as this will provide immediate insights and reveal strategic gaps that require immediate attention.
Some of the key elements addresses in this report focus on the following issues facing corporate Australia:
A substantial issue facing corporate organisations is the management of cash as it directly affects the operations, scale and sustainability of the business. The impact of the recent bushfires, and now COVID-19 is causing significant distress to the cash-flow of organisation. As such, corporate organisations are focussing on debt structuring, cash preservation, tax strategies and cash management. In addition we expect corporates to actively re-assess economic and financial models, to stress the assumptions as these have materially changed recently
Corporate directors, who have a duty to the company (rather than to individual shareholders, employees or to other stakeholders) are looking for support during these difficult times. It is widely reported that directors are concerned about the longer term solvency of business in this environment and are therefore investigating safe-harbour requirements and options to protect themselves and the business during these times. Read more about Business Recovery.
We also notice a strong focus on people from corporate Australia, where pro-active corporates have moved quickly to ensure the safety of their staff and clients. In addition, corporates are assessing new risks posed by the new home-environment many people are operating in currently. Issues around work, health and safety as well as increased cyber security risks are high on the agenda.
Many corporate businesses are re-evaluating their future and are adopting a formal review of the data underpinning the decisions required for future scenario’s. This new environment provides new data which will impact financial and economic modelling, especially the viability of projects, cash-flow cycles and business forecasts.
COVID-19 resources for Corporate Enterprise
For more information and contact, please visit the Australian business and Coronavirus (COVID-19) page.