The current situation made clear how quickly a crisis can occur on an unpredictable scale (economic shot-down). Countries, economy and companies were initially overwhelmed with the Corona crisis. Even sophisticated analytical tools did not foresee such a "black swan .”
Even though the first recovery of the Corona impacts can currently be observed, the further development is very uncertain. The returning from the lockdown always bears the risk of a new rise of infection rates.
Risk management in corporate treasury is therefore more important than ever! It was and is essential to define risk areas and use scenarios to check what effects the current situation could have on the company to be prepared for appropriate measures. Depending on the intensity of the effects, the catalogue of measures must be adjusted from scenario to scenario.
The following "risk matrix" provides the treasurer with a first quick overview of potential sources of risk and helps to identify the need for action. The aim is to point out general potential consequences and make recommendations for action.
Risk Matrix
Prepared by Verband Deutscher Treasurer e.V. Risk Management-group
This article deals with short-term measures to optimise working capital and liquidity management. The strengthening of the supply chain, a currently important measure for many companies, is illustrated by an example from the retail sector.
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