Organizations are facing unprecedented times as the measures being deployed to slow the spread of the novel coronavirus (COVID-19) are impacting capital markets, supply chains, and business operations. The uncertainties of the current environment serve as a powerful reminder to senior decision-makers of the need for risk management and crisis planning.
Organizations that have typically survived crises were best able to recover if they:
- had a well-tested business continuity plan or prepared such a plan promptly
- had strong leadership to ensure decisive action in response to immediate uncertainties
- communicated swiftly and frankly with stakeholders and, where appropriate, the media
- demonstrated practical compassion for those impacted
- were prepared for the mundane and predictable problems of business continuity (e.g., alternative technological and communication systems, preservation of vital records and other operational requirements, including remote access)
- had access to financial and other resources to absorb the effects of the crisis or conducted an early and aggressive review of cash flow and developed a cash management plan
COVID-19 poses significant challenges and, unlike many crises, has unfolded without much advance warning or scope for preparation. Nevertheless, there is a wealth of information and resources that organizations can use to weather the pandemic and its aftermath and can be accessed here. CEOs and small business owners may find it helpful to bring this information to their boards or other advisors to stimulate discussion on the issue.
CRISIS RESPONSE STRATEGIES
- How is the organization reacting to this crisis?
- Are employees, shareholders and other key stakeholders staying calm and letting the leaders of the organization address the crisis?
- Do those in leadership positions have access to the resources and support necessary to respond decisively and effectively?
- If not, how can the organization best access external advice?
Responding to COVID-19: Insights from Financial Leaders (Webinar)
April 28, 2020 | CPA Canada
Business Continuity During a Crisis: Considerations
2020 I CPA Canada
Business as Unusual
2020 I CPA Canada
Leading Successfully in Turbulent Times
2020 | KPMG
COVID-19 Business Continuity Plan: 5 Ways to Reshape (EY)
2020 I EY
CASH FLOW MANAGEMENT
- Does the organization have sufficient funds (or access to financing) to continue operations?
- How will the organization fund extra costs or operate with reduced revenues during the crisis?
- Is a cash flow plan in place and how should it be revised to address unanticipated expenses?
Optimizing Cash and Lender Dealings in the Current Crisis (Webinar)
April 17, 2020 | CPA Canada
COVID-19: Business Continuity During Crisis – Cash Flow Management
March 2020 | CPA Canada
COVID-19: Is Your Company Insured for Business Interruptions?
2020 | BLG
Responding to COVID-19: 7 Steps to Manage Cash Flow and Financial Headwinds
2020 I Grant Thornton
NFP: Accessing Restricted Funds
2020 | Ontario Office of the Public Guardian and Trustee
CORPORATE GOVERNANCE & COMMUNICATIONS
- How is the organization communicating to key stakeholders and the public in general?
- Is information being communicated to those who need to have it (e.g., is the CEO of a public company appropriately engaging the board?
- Is the board balancing its need to know with management's responsibility for dealing promptly with urgent issues?
Returning to the Workplace After COVID-19: What Boards Should Be Thinking About
2020 | PwC
COVID-19: Is Your Company Insured for Business Interruptions?
2020 | BLG
Stepping In: The Board's Role in the COVID-19 Crisis
2020 | Deloitte
Directors' Duties and Governance Best Practices in Response to COVID-19
2020 I Davies
NFP: Communications, Protection, Readiness: NPower’s NonProfit Guide to Business Continuity and Disaster Recovery
2020 I NPower
OPERATIONS AND PROTECTING EMPLOYEES
- What are the essential services that must continue, and which ones may be put on hold?
- What is the plan for operating with a skeleton crew?
- If those in leadership positions are out of commission, who can direct the organization as needed?
New Details on the Canada Emergency Wage Subsidy
2020 | CPA Canada
Canada's COVID-19 Economic Response Plan: Resources for Businesses
2020 | Government of Canada
Employment Law in the Era of COVID-19: What Now and What's Next? (Webinar)
2020 | Osler
Note: Resources created by external organizations were not reviewed, developed or approved by CPA Canada. CPA Canada accepts no responsibility or liability that might occur directly or indirectly as a consequence of the use, application or reliance on these external resources.