CFO Insights

Managing through COVID-19: Six imperatives for CFOs

Bolster liquidity by managing short-term credit, cash, and performance needs. Photo by Busakorn Pongparnit/Getty

Slightly more than a decade after the Great Recession, COVID-19 has brought back the dreaded "R" word to haunt executives in the global economy.

The practice of social distancing to slow the contagion has abruptly and sharply curtailed economic activity around the world. Moreover, it is becoming clear that a worldwide recession of significant depth emerged in the first quarter of 2020 and may continue for an uncertain period.

Downturns and recessions are challenging, but some businesses are not only able to come out intact, they are also able to seize on opportunities to outdistance their competition and position themselves for future growth.

Still, the speed at which the COVID-19 crisis is unfolding may likely require CFOs to use new tools — virtualization and scenario-based forecasting, for example — in addition to the traditional levers they have used to act swiftly and reasonably.

In this period of rapid economic deceleration and uncertainty, Deloitte has identified six distinct imperatives that it believes can help CFOs protect their companies and workforces:

  • Prepare for talent disruption and virtualize your organization by providing resources for your talent and making clear how people should support one another, and by virtualizing the finance function and other parts of the organization to operate effectively amid social distancing
  • Bolster liquidity by managing short-term credit, cash, and performance needs
  • Communicate frequently with critical stakeholders to keep them informed
  • Drive operational improvements necessary to navigate the sharp downturn
  • Manage risks and serve as stewards of company assets during this vulnerable time
  • Plan for recovery post-COVID-19 crisis by strategically positioning and utilizing assets

Continue reading the latest edition of CFO Insights on Deloitte's website to explore six distinct imperatives that will assist CFOs in protecting their companies and workforces.

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This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
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Building Houston

 
 

This week's roundup of Houston innovators includes Asma Mirza of Steradian Technologies, Sahar Paz of Own Your Voice, and Emily Cisek of The Postage. Photos courtesy

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from health tech to software — recently making headlines in Houston innovation.

Asma Mirza, founder and CEO of Steradian Technologies

Asma Mirza joins the Houston Innovators Podcast to explain how a pandemic pivot turned into a global health opportunity. Photo courtesy

It took a global pandemic for Asma Mirza to see a gaping hole in modern health care: Quick and affordable diagnostics tools. She founded Steradian Technologies in 2018, originally to create human super-sight via proprietary optics. In early 2020, the company was getting ready to start testing the device and fundraising. Then, the pandemic hit, knocking the company completely off course.

Co-founder and CEO of the company, Mirza, says on last week's Houston Innovators Podcast that the Steradian co-founders discussed how their optic technology could detect diseases. Something just clicked, and the RUMI device was born.

"We are from Houston, Texas, which is one of the most diverse and accessible cities in the country, and we were having trouble with basic diagnostic accessibility. It was taking too long, it was complicated, and people were getting sick and didn't know if they were positive or negative," Mirza says on the show. "That's when we pivoted the company and decided we were going to pivot the company and use optics to detect diseases in breath." Click here to read more.

Sahar Paz, CEO of Own Your Voice Strategy Firm

A Houston expert shares how to improve on communication in the health care setting. Photo courtesy

Emotional intelligence is a major part of running a business — but its crucially more important in the health care space, according to Sahar Paz. She writes in a guest column for InnovationMap how to improve on communication in the health care setting — and why it is necessary to provide a high level standard of care.

"Health care sets up an environment for a tornado of emotions, and the rules and regulations centered around patient-provider interactions are often complex to navigate," she writes. "This leaves many on the brink of emotional exhaustion, and for survival’s sake, depersonalization with patients becomes the status quo. Feeling a disconnect with their patients is another added weight, as few get into this industry for just the paycheck – it’s the impact of helping people get healthy and stay healthy that motivates them." Click here to read more.

Emily Cisek, founder and CEO of The Postage

A Houston founder shares an analysis of relationship banking, the pros and cons of digital banking competition, and an outlook of digital banking inroads to develop relationship banking. Photo courtesy

Emily Cisek is the founder and CEO of The Postage, a tech-enabled, easy-to-use estate planning tool, and she is helping simplify estate management — something that includes working with banks. She writes in a guest column for InnovationMap how ripe for innovation the industry is.

"Digital banking firms that want to thrive in the upcoming decades are going to need to innovate in long-term financial planning products that bring their customers into a closer, more personal relationship with them," she writes. "The finance world will continue to change and develop, but the hopes, fears, and dreams of people trying to build and secure a better future for themselves and their children will remain the same for tomorrow’s customers as they were for their parents and grandparents. It is up to the digital finance industry to adapt and develop to provide the customers of today—and tomorrow— with these invaluable services and securities." Click here to read more.

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