Operational Financial Resilience - FTI Consulting

Business Model &
Workforce Transformation

Efficiency and effectiveness:
Driving change across the business cycle

Operational &
Financial Resilience

Creative destruction:
Building resilience from the balance sheet up

Digital Trust
& Ecosystems

A new world of threats:
Managing cybersecurity risk in changing times

Escalation Planning
& Response

The Anatomy of a Crisis:
The right approach to crisis preparedness is a holistic one

Remediation &
Dispute Resolution

Investigations and disputes in a post-COVID world:
When will the storm hit?

Government &
Stakeholder Relations

Strength in leadership:
The new rules of stakeholder engagement

Economic Impact
& Sustainability

Resilience and Sustainability:
Two sides of the same coin?

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.

78%

of G20 firms believe their business models must fundamentally change as a result of the pandemic.

Over

6 in 10

G20 companies are facing challenges servicing their debt requirements since the start of the pandemic

0 %

of businesses are undertaking contingency planning in anticipation of a prolonged downside as a result of COVID-19.

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 predicted an aggregate cash flow deficit of around £140bn from Q2 2020 to Q1 2021.

Operational risks present before the pandemic have been amplified. 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.

*Statistics from ‘Resilience Barometer – COVID special edition’ for more information contact dan.healy@fticonsulting.com

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; three in every four G20 firms now use these to monitor risk scenarios compared with two in four pre-pandemic.

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.

of companies pointed to extreme or significant pressure to strengthen external stakeholder relationships over the next 12 months.

have accelerated the digitisation of their business.

of companies have been forced to fundamentally re-imagine their client/customer experience as a result of the pandemic

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.

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.

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.