7 RESILIENCE LEVERS
Business Model &
Workforce Transformation
Efficiency and effectiveness:
Driving change across the business cycle
7 RESILIENCE LEVERS
Operational &
Financial Resilience
Creative destruction:
Building resilience from the balance sheet up
7 RESILIENCE LEVERS
Digital Trust
& Ecosystems
A new world of threats:
Managing cybersecurity risk in changing times
7 RESILIENCE LEVERS
Escalation Planning
& Response
The Anatomy of a Crisis:
The right approach to crisis preparedness is a holistic one
7 RESILIENCE LEVERS
Remediation &
Dispute Resolution
Investigations and disputes in a post-COVID world:
When will the storm hit?
7 RESILIENCE LEVERS
Government &
Stakeholder Relations
Strength in leadership:
The new rules of stakeholder engagement
7 RESILIENCE LEVERS
Economic Impact
& Sustainability
Resilience and Sustainability:
Two sides of the same coin?
7 RESILIENCE LEVERS
Real-Time Data
Analytics
Data is the lifeblood of resilient businesses

Surviving a post-pandemic
downturn is not enough.
Businesses should be building
robust new models to ensure
long-term resilience.

Institutional investors attribute an average of

36%

increased value in companies as a result of having a very positive ESG rating

Pre-COVID, more than

1 in 5

business leaders surveyed thought the crisis events with the biggest impact on turnover were major product defects and cyber attacks

Pre-COVID, only

0 %

of business leaders expected to deal with issues arising from bad debt to be an issue in 2020

The scale of the impending financial crisis following COVID-19 is not yet known, but there are signs of a long winter to come. Estimates of unsustainable corporate debt in the UK alone exceed £100bn.The Bank of England predicts an aggregate cash flow deficit of around £140bn from Q2 2020 to Q1 2021 – a type of problem anticipated by only 7% of respondents to FTI’s January 2020 Resilience BarometerTM .

Operational risks present before the pandemic have been amplified. The Barometer revealed cyber-attacks and product defects as the biggest threats to turnover (each named by 11% of respondents). Now COVID-19 has added complexities of its own to the picture. These include disturbances to the supply chain and general operational disruption stemming from social distancing and hygiene measures – not least the move to mass working from home.

FUTURE-PROOFING THE BUSINESS

Most businesses’ focus is currently on protecting short-term viability, but equal attention should go towards building long-term strength by adapting the operating model for this new business environment.

Balance sheet resilience can be increased via operational and financial restructuring – the latter entailing a combination of refinancing, de-leveraging through disposal of non-core assets and tighter cash flow management.

AI and analytics are vital aids to risk mitigation; they were already the most popular tools for this purpose before the pandemic, according to the Barometer, which found they were used by 50% of respondents. Now, cost pressures make technological solutions indispensable.

To compete in a transformed ecosystem, businesses must challenge old assumptions around financial and operational best practice. Those that do will emerge leaner, smarter and with renewed purpose.

0%
of business leaders surveyed used AI and analytics to monitor for scenarios which might impact turnover
0%
of business leaders surveyed believed their country would become a worse place for business in the next year
0%
is the average share price drop when cases of financial mismanagement develop into crises
COMPETE
To outperform their competitors in the longer term, companies need a strong balance sheet and a flexible operating model supporting resilience, automation and efficiency – not just low costs. Also essential is an actionable implementation plan for delivering new ways of working.
ADAPT
After rapidly adopting new ways of working, businesses must plan for the longer term, ensuring their strategies and programme structures are flexible enough to enable management to respond to fast-changing and uncertain economic circumstances.
PROTECT
Capital structures and operating models must be robust enough to deal with short-term shocks. Businesses must monitor liquidity with focused cash management strategies, and prepare for disruption scenarios with comprehensive business continuity plans. Embedding integrated risk management will protect employees, assets and data, as well as cash.

Perspectives

How European Retailers Can Manage COVID-19 Disruption and Make It to the Other Side

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COVID-19 and Commercial Real Estate Considerations

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3 Approaches to IP Valuation for Pandemic Recovery

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Karen Briggs
Head of Forensic & Litigation Consulting, EMEA
Simon Granger
Head of Corporate Finance & Restructuring, EMEA

EXPERTS WITH IMPACT

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