What to do today to prevent a crisis?
Very few companies anticipate a crisis. Even more exceptional, is finding companies which have a prevention plan ready in time.
Here are some recommendations:
- Identify how the current context will impact your business.
- Identify your clients, suppliers and essential stakeholders for your business.
- Identify the commitments, contracts or agreements you have entered into.
- Identify which commitments or liabilities of your company or your counterparty could be compromised or not fulfilled.
- If you believe that the current context will generate a contractual breach by your company, identify if you have exit clauses or mechanisms to make compliance more flexible.
- What are your cash requirements and your sources of financing?
- Identify other contingencies that can impact your business.
With updated and organized relevant information, the management of each company must prepare a crisis prevention plan. Prompt action is required to preserve business value. In times of uncertainty, let us put chance aside and start taking action.