Beyond the immense impacts the coronavirus (COVID-19) outbreak is having on public health, the pandemic directly impacts economic activity and poses unique challenges to businesses across industries because of its potentially compounding and unpredictable consequences.
With massive quarantines, travel restrictions and factory shutdowns, companies are struggling to quantify potential exposure. Attempting to mitigate potential losses from an unknown number of variables is daunting, especially when the situation is changing daily.
Understanding how to determine and capture lost revenue and income stemming from this unpredictable outbreak is critical to minimize financial implications. Here are some questions you might ask to help navigate uncertainty moving forward:
1) How prepared is my organization? What does “prepared” look like to our organization?
2) What are our organization’s capabilities, strengths and weaknesses, including across the supply chain? Which third-party risks do we have, and where are they concentrated?
3) Have we clearly communicated to our workforce what steps they should take and how they should respond to different scenarios identified?
4) What is our organization’s insurance coverage, and do we have funds to support this crisis? Does your organization have coverage for an insurance claim?
5) Do we have a proper plan in place for Cash Management?
The Wiss Business Advisory team specializes in business continuity planning and creating operational and technical efficiencies through our Business Process Review.