Wars, downturns, calamities, pandemics, and other crises drive businesses into uncertain situations, low turnovers, stagnant growth, unemployment, and even insolvencies.
Financial planners—especially CFOs—though, try to confront these situations, but at times they are clueless as to what will work in the near term and what should constitute their planning for the long term.
Uncertainties caused by downturns and calamities necessitate immediate actions and adjustments in Corporate Strategy. Financial planners should work on gauging the effect of the crisis and revisiting business objectives, but they usually lack the tools or data to strategically model a crisis, recommend strategies, and plan immediate interventions.
Scenario Planning is a strategic planning method that organizations use to make flexible long-term plans. It can prove be a useful tool in times of crisis and uncertainty. In fact, as part of Crisis Management, it is important to anticipate multiple crisis scenarios and develop action plans for each scenario that the current crisis may present.
We provides an overview of the 3 strategic options that executives typically employ to evaluate, plan, and tackle a crisis and its untoward effects:
1. Do nothing – This is riskier approach that executives often employ during times of uncertainty, downturns, and calamities is to do nothing but wait and see how things unfold.
2. Plan for the worst, hope for the best – A number of organizations plan for a single worst-case scenario in the hopes that it will protect them from any unprecedented crisis situation. Such a strategy may lead to disasters.
3. Consider all possibilities – Contemplating as much probabilities as possible is necessary to plan for and mitigate the adverse effects of a crisis.
For addition information regarding how Dawgen Global Team of Advisors can assist you with handling Crisis contact Dawgen Global Team at : [email protected]
About Dawgen Global
Dawgen Global is an integrated multidisciplinary professional service firm in the Caribbean Region. We are integrated as one Regional firm and provide several professional services including: audit,accounting ,tax,IT,Risk, HR,Performance, M&A,corporate recovery and other advisory services
