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As the global economy been hit hard by COVID-19 endemic, business organizations should have a clear understanding of their respective risk and develop strategies plans in the face of the unexpected to ensure their business continuity. There is some area of focus that businesses should look into it:
1 SET UP CROSS-FUNCTIONAL COVID-19 RESPONSE TEAM
Companies can consider setting up a dedicated team formed by members from each support function and report to senior management. They are responsible to assess and manage the potential impact of COVID-19. Workstreams include health and safety duties of care and good faith to employees, developing business continuity plan, supply chain monitoring, marketing and sales response etc.
2 CREATE A HEALTHY AND SAFETY WORKING ENVIRONMENT
Necessary precautionary measures must be taken at workplace to protect your people. Actions can be taken such as implement temperature screening for visitors and employees, provide hand sanitizer and increase cleaning and disinfection of workplace.
3 LIST POSSIBLE IMPACTS ON BUSINESS
Identify the possible impact of Covid-19 to the business and develop mitigation strategies. Companies should maintain close communication with key suppliers and customers to discuss the likely impact of Covid-19. Businesses will likely be impacted in areas of sales demand, supply chain, availability of workforce and financial liquidity.
4 REVIEW YOUR BUDGET WITH NEW ASSUMPTIONS
The assumptions used to produce budget are most likely irrelevant due to the crisis. Working with your accountant, re-do the budgets based on new assumptions in different scenarios such as optimistic and conservative scenario, from the new budgets further develop contingency plan alongside with company objectives and goals.
5 IMPROVE CASH FLOW OF YOUR BUSINESS
Business likely will struggle with cash flow problem during this challenge time. Company must focus on improving its cash flow. Necessary steps to take include prepare cash flow forecast, review on inventory, debtors and creditors management, monitoring spending and seek finance to fill cash shortfalls if necessary. By knowing your cash flow problems enable you to act early to address it.
6 STABILIZE THE SUPPLY CHAIN
Company need to define the extend and duration of disruption in their supply-chain. Communicate with the key suppliers about possible impact on their ability to delivery capability and pricing. Company should diversify source of supply.
7 CONSIDER ALTERNATE REVENUE STREAM
If most of the existing revenue stream been disrupted due to the crisis, businesses should look at alternate revenue streams or new business opportunities.
