What steps can you consider taking and how can you think about managing your specific Business Risk in terms of Coronavirus?
Coronavirus has exponentially and rapidly spread globally in recent weeks. Many questions in terms of Business, Government, Political, Economic and Industry Sectors can’t be considered or answered during this phase of the Pandemic.
While it may appear as though Governments and Agencies are working hard to protect people and economies, they were generally and are fundamentally ill prepared to roll out on it. To some degree they are looking behind themselves and using ad hoc processes to decide what action to take.
Check here regularly as the government will keep releasing business stimulus packages:
Many Government and Industry strategies are not yet thought through or can’t be developed yet so don’t stand by, wait for and depend on Government initiatives to support you or your business at a personal or micro level; you need to be able to take action relative to your own position now!
As it stands the current Government package may be too small, not front loaded and ineffective to meet many immediate needs so you are going to need to improvise, while they catch up!
You need start to devise flexible strategies and plans and be willing to change as required.
Have a basic, but clear plan to start dealing with this event, understand it’s not just your business and immediate eco-system; things and events are upstream, downstream and parallel to you and your business. Look to actions in the first instance that preserve and protect the core elements of your business for it to survive and be viable if possible, now and in the future.
A big component of a business’s costs is a raft of taxes, some are business or industry specific taxes, and these are extraordinary times, you may have to consider very seriously how you deal with these taxes, note we are drawing your attention to the area, not suggesting what you do, certain actions may provide near term relief, but we don’t know the longer term consequences you may bare!
A key point is the protection of people as a primary focus, though management and preservation of, cash flow is most probably the next most important area.
Remember to look at how you can deploy technology to work remotely and safely, if you google this are you will find a number of ideas, check with your IT advisor and team also.
If you have people and you have capacity, think about how you can deploy to help your community and other business safely, research ideas in this area.
A staged approach can be applied and adopted by you for your businesses firstly:
Identify and determine largest potential impacts of coronavirus on your business, there are many, so focus on the key ones first.
Draft action plans that will assist you to monitor these impacts and risks and manage them in a way that reduces the disruption to the business (where possible).
Do the above now! Work out what the implications of the above are, can you plan to reduce risk and what level can or are you required to remain operational?
Concepts and ideas to consider when reading this:
React swiftly with thought and energy, move first, be prepared, engage with stakeholders, be coordinated and coherent, look at the other sectors, don’t expect to confirm you are 100% right before making a decision, change it later, speed beats perfection, don’t be afraid of a mistake, it may be worse to do nothing than being brave and take action now, don’t fear making a mistake or the consequences of a decision, don’t be paralysed by the fear of failure!
Five-steps you can work through with your team and in your business to manage the risk coronavirus poses to your business:
What issues can you identify for your business?
1. Have any of your team or employees had exposure to the virus through work or otherwise?
2. Evaluate and Quantify the Financial and Operational Issues
3. Assess the resources available to you
4. Develop an Action Plan
5. Regularly review the Action Plan, modifying as necessary
The JACAL Government Covid-19 Package notes and links can be found here: https://www.jacal.co.nz/jacal-news-covid-19/
Government Business site here:
Seek professional advice relative to your business and personal circumstances before acting, these notes are general and informative only and are not instructions, JACAL, its employees and contractors accept no liability for your actions or interpretation of these notes as a result.
Disclaimer – While all care has been taken, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this newsletter; always see your professional advisor before taking any action that you are unsure about.