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Decision Making in Complex and Volatile Times
Making data-based decisions in five key financial areas
For many business leaders, COVID-19 will be the most disruptive, world-changing event in living memory. Business leaders need to implement a new response framework that enables them to confidently make better business decisions when in uncharted waters. This is what resilience looks like.
C-suite leadership teams must focus on the insights from data and analytics when making business decisions in five key areas:
Protecting People and Assets
Making data-based decisions in five key financial areas
Protecting the Balance Sheet
Managing
Costs
Maintaining or Increasing Revenue
Revisiting Business Strategy
Protect People and Assets
A company’s assets — whether people assets, physical assets, intellectual property or otherwise — will have to withstand the new challenges of the pandemic.
Protect the Balance Sheet
Leaders must assess their company’s liquidity and fully understand and analyze risks to make the best decisions to ensure their organization’s financial health.
Leaders will need to turn their attention where necessary to raising capital, creating capital protected investments and leaning on contingent capital. Departments across the organization will need to work closely with the CFO and the finance team to understand their function’s impact on the balance sheet:
Expense rationalization and credit protection
PEOPLE
Assets
Counterparty risk
Pension plans, including reduction of liabilities, contributions and cost
Maintain or Increase Revenue
Many companies are seeing their revenues dry up because of the pandemic, and no industry is completely immune. Leaders must now identify strategies that help maintain or increase revenue, especially as they prepare for the unknown.
To further shield against revenue loss, this may be a time to:
Tap loss warranties
Focus on recapitalization
Rethink asset/ liability management
Ensure employees are ready and able to digitize their work
Analyze risk mitigation and investment opportunities
Even in an uncertain climate, there are long-term opportunities that companies can take advantage of if they’re able to fully analyze the risk involved.
Short-Term Actions
Long-Term Actions
Cost Management
When assessing their options, leaders must utilize the data at hand and rely on analysis to identify the areas where they can balance impact with the organization’s long-term needs.
Companies that have governance models in place are well-placed to assess the regulatory environment in order to take quick and decisive action to find additional cashflow and cost savings.
Most importantly, as any actions are taken, it is important to craft and execute a careful communication and change management plan to minimize further disruption.
Healthcare
Pension
Retirement
Compensation
Revisit Business Strategy
As they assess business strategies throughout the COVID-19 crisis and beyond, companies should be thinking about:
And certainly, leaders must reassess risk, but as they revisit business strategies, companies must do so through an enterprise-wide strategic – not tactical – lens.
Long-term ambitions for mergers and acquisitions
The world as we know it is being completely reshaped by the pandemic. No company will simply bounce back or rebound to the way they were before.
To help companies successfully navigate the COVID-19 crisis, Aon has developed a comprehensive response framework for dealing with the challenges that lie ahead. As your trusted advisor, we can help you build resilience for both the short and long term.
Learn to Protect Your People and Your Assets
Learn to Protect Your People and Your Assets
People
Managing your employees’ health and wellbeing should be your top priority. Use this opportunity to accelerate your workforce of the future by tapping into technology solutions that allow this to be done virtually and focus on your overall people strategy — including:
PEOPLE
Assets
Talent acquisition
Retention & development
Right-sizing the workforce
Redeploying talent
ASSETS
Leaders must have a clear understanding and analysis of their risk and insurances during this time and getting that information should be a top priority. Organizations must analyze risk data as it relates to:
Real estate
Business continuity and interruption
Supply chain
Cyber risk
Operational resilience
Reputational
Short-Term Actions
Pivot your business model and serve customers in new ways.
Long-Term Actions
Adjust the value proposition to keep revenues afloat.
Find ways to provide the same or a similar service or value virtually.
Determine how to monetize intangible assets on the balance sheet.
Connect With Us
Connect With Us
Divesting underperforming companies
Capital
investment
planning
Workforce planning that reflects the new reality of a COVID-19 world
Strengthen Your Balance Sheet
Strengthen your balance sheet
New Ways to Increase Revenue
How to Assess and Manage Costs
Optimize your business strategy
New Ways to Increase Revenue
How to Assess and Manage Costs
Optimize your business strategy
Informed Decision Making has Never Been More Important
