Leveraging Learnings from a Catastrophe to advance Business Sustainability
Looking Ahead Post COVID
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Covid-19 is a painful lesson in risk management as companies – big and small – reel from crippling blows in their customer base, supply chain and financial resources. Survival and future success depend on taking stock, sometimes pivoting and rebounding stronger by re-establishing (or establishing) a robust risk management framework to limit downside risk.
What can organizations learn from the past to help them mitigate this crisis and come back stronger?
According to a July 2020 McKinsey report titled, US small business recovery after the COVID-19 Crisis, it took larger sized companies an average of four years to regain their footing and six years for small ones after the 2008 recession. With the world still in the throes of the COVID-19 pandemic, there is much uncertainty around the long-term damage or health of companies and that outcome, says McKinsey, and will depend on “both economic vulnerability to the COVID-19 response and the prevailing macroeconomic outlook in their respective industries.”
Modeling done by the McKinsey Global Institute and Oxford Economics, a leader in economic forecasting, also showed that it will take five years for recovery from COVID-19 as the best scenario. More than 50% of global leaders agreed with that assessment; they also agreed that among small businesses, the situation was more dire. That is, recovery would either take longer or some businesses would be shuttered for good. Companies that are most likely to succeed employ a preemptive risk strategy and thoughtful strategic planning – see our earlier article on steps for achieving that result.
Supporting businesses through COVID-19
Mavenly Consultants is a trusted partner to businesses working to remain or become more sustainable. We help leaders by assessing and recommending improvements in critical areas such as:
Working Capital Management
Access to financing
Internal controls and policies
As businesses prepare and reimagine the future of the business landscape, we stand ready to help drive your business forward.