The Covid-19 outbreak is first and foremost a human tragedy, affecting hundreds of thousands of people. It is also having a growing impact on the global economy.
As the outbreak continues to spread, businesses are preparing for possible impacts on their operations.
In this aCovid-19 & Your Business update, Aine Kiely O Donnell looks at what businesses should do to prepare for potential disruption to the market.
The COVID-19 Shock To the System
What is the short term and long term strategy for your business?
In short, I believe that COVID-19 is the Black Swan Event for many industries.
I am sure that remote connectivity and agile working is on the top of your list right now with everything going on with Covid-19.
This is what we, at AAL, are suggesting:
Businesses have to Rethink:
Review and Plan – Agility and adaptability are Key in any crisis.
Businesses need to engage with Stakeholders
Speak with your employees, your Supply Chain and your Customers.
“Covid-19 Highlights the need to transform traditional supply chain models”.
Culture Change:
- Employees working from home.
- IT Systems and support for evolving systems and work requirements.
- Travel Commitments.
- Inability of staff to attend work.
- Succession plans for the key decision makers.
- Ensure that there is a policy in place and communicate the policy.
Cyber Security:
- People working from home must be on a secure, managed and maintained link, with sufficient firewalls in place.
- Talking to the experts to ensure that the data is safe and free from corruption.
Financial Planning:
- Restrictions on Cashflow – review of Costs (Fixed and Variable) and Cost Control.
- Revenue Commitments.
- Cashflow commitments.
- Ability to commit, and also the impact on the cashflow of disruption to sales.
- Loan repayments.
- Strategy for the future.
Insurance considerations:
Will insurance coverage extend to virus-based losses? This is a question that I have been asked repeatedly in recent days. What does your travel insurance cover if travel commitments cannot be fulfilled? Also, is travel insurance valid in a time of government mandated curtailment and lockdowns?
Actions to Take
- Costs minimisation.
- Review resources both human and financial.
- Staff and Management Alignment.
- Decision policy communication and vision – meetings and structure for period during disruption.
- Understand the regulatory changes with Financial Institutions and Revenue Guidelines.
- IT /Internet sustainability, data safety and online communication.
- Supply Chain commitments and buy in over the six months, the cashflow requirement.
- Businesses should be reviewing their insurance policies, including any extensions to better understand terms and conditions.
- Covid 19 along with Brexit strategic planning -these are both significant shocks for companies to deal with.
- Safe working environment – Keep your people and working environment safe.Review your travel rules, HR policies, first aid plans and create safe ways to exercise the arrangements.
We are also encouraging companies to maintain strong communication with all stakeholders (Customers, Suppliers, Employees, Financial institutions) and prepare the strategy for the impact after the event and the rebound period and the opportunities and risks to your market.
The response window for a crisis is typically measured in months, while recovery is measured in years. However, a crisis doesn’t necessarily mean disaster. Whether a business survives intact is directly related to how well it’s prepared.
AAL can help you with your planning to manage your business through this crisis and into the future.
As always, at a time like this, it is essential that businesses stay abreast of government and regulatory announcements. We recommend that you read the details on this link from the Irish Government https://dbei.gov.ie/en/Publications/Business-Continuity-Planning-A-checklist-of-Preparatory-Actions-in-Responding-to-the-COVID-19-Outbreak.html
Call AAL now on 052 6137775 or complete the form and we will get back to you.
Covid-19 Resources from AAL
What Employers Need To Know About Covid-19
The unprecedented health emergency that is Covid-19 has brought about decisive actions from governments around the world. In Ireland, a number of schemes have been introduced to assist employers and the self-employed. We look at the details of those schemes in this article. Read the article by clicking this link.
Read the article by clicking here.
It’s Time To Start Thinking Differently
In times of disruption or crisis, novel circumstances abound. Understanding the contours of what is happening and what is most likely to happen next can be the difficult piece, especially if you are a traditional thinker.
Read the article by clicking here.