PETALING JAYA: Businesses need to monitor changing customer demand patterns and re-evaluate their sourcing strategy.
This was the advice given by the Association of Chartered Certified Accountants (ACCA) after a survey it conducted showed that businesses were not prepared to face the Covid-19 crisis.
The survey showed that cashflow problem may force 24% of businesses to fold up within the next six months, and up to 49% of businesses could go under in 12 months.
Less than half (47%) had implemented a successful business continuity plan (BCP) while 20% said their BCPs had proven ineffective in dealing with the crisis, and a third (33%) had no BCP at all.
The survey had 10,000 respondents, including 919 finance professionals in Malaysia.
“Consider establishing a dedicated crisis-management team to lead the response to the crisis,” ACCA Malaysia country head, Edward Ling told theSun yesterday.
He advised companies to secure themselves by analysing different information sources.
“ACCA recommends staying informed on government policies such as up-to-date news and announcements as well as the effect of any local economic stimulus plans and packages,” he said.
“It’s also important to refer to finance experts such as professional accountants who are equipped to analyse fiscal trends and financial data to help businesses develop appropriate models for current and future scenarios.
“ACCA has also set up a Covid-19 Global Online Hub to help organisations deal with the impacts and implications of this pandemic.”
Urging businesses to anticipate future trends and look for opportunities to innovate, he said every crisis opens up opportunities.
“Examine current business operations to see which could be improved or made more efficient or agile,” Ling said.
He recommended that companies pay attention to the physical and mental health of employees and develop appropriate plans for the resumption of work.
“Businesses are also urged to put in place a communications plan that will engage and update employees regularly and implement human resource policies that address crisis measures,” he said.
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