How to Respond to Covid19 – PWC recommendations

As the scale and nature of the disruption that the COVID19 continues to evolve, what are the key areas that Irish businesses should be focusing on, and how should they respond to the uncertainty that faces them?
This post is a summary of the key points from a PwC article on how businesses should respond to the pandemic. The article was divided into 6 key areas.
  • Crisis management
  • Workforce
  • Supply chain and operations
  • Finance and liquidity
  • Tax trade and regulation
  • Strategy and brand

Crisis management

Keep tips here include reviewing your continuity plan set up a dedicated recovery team and specify “who is doing what”.
Identify all possible scenarios and come up with the plan to deal with all options. Your staff and other stakeholders will be reassured to see that you have a thought out plan in place.
Revisit your strategy and risk assessments, especially in the area of IT infrastructure for remote working, SWOT analysis etc.

Workforce

The welfare of employees is a key priority for businesses, however other challenges include:

The ongoing return to work needs to be considered in four key decision areas: health and safety, financial, worker preference and type of work.

Consider availing of government supports or further payroll reduction measures to keep the business going.

Communicating with your people by having the right information to sustain a culture of high engagement throughout the COVID-19 crisis.

Supply chain and operations

Act quickly – map out your supply chain so you have visibility of your chain.

  • Identify alternative supply chain scenarios.
  • Investigate if there are pre-approved parts or raw-material substitutions you can make?

Finance and liquidity

  • Have a solid understanding of your cash position.
  • Find access to access to sources of liquidity and where working capital can be released.
  • Get good financial information in order to make the right medium- and long-term decisions.
  • Engage with stakeholders

Tax, trade and regulation

  • Effectively manage cash taxes, obtain available refunds and consider local government and tax authority measures in response to COVID-19.
  • Consider actions to stabilise trade links and supply chains.
  • Assess the resources your company needs to meet your ongoing indirect and direct tax compliance requirements

Strategy and brand

  • Consider accelerating digital transformations to adjust to the changes wrought by COVID19.
  • Protect growth and profitability through actions such as scenario planning, more frequent financial modelling exercises to improve resilience and new models that incorporate economic impacts of past pandemics.
  • Talk to your customers and monitor key shifts in core markets or business models as a result of the pandemic.

You can read the full PwC Ireland article here.