Economic Crisis a Time for Self-Analysis


The unstable economy can lead to business challenges for some companies and opportunities for others.

To help you and your clients make difficult decisions, Protiviti Inc., a business consulting and internal audit firm and a subsidiary of Robert Half International, has formed the Financial Crisis Team.

The team suggests the following steps to help companies prepare for future market disruptions:

  • Review financial condition, focusing on asset quality, liquidity, capital strength and financing.
  • Evaluate options available under various government programs and private-sector alternatives to determine which are viable.
  • Prepare financial projections and forecasts based on the best options available.
  • Stress-test financial models, including resulting credit and market risk exposures.
  • Review the current risk management framework, with a focus on processes for assessing credit and counterparty risk and liquidity risk.
  • Adjust and take actions to mitigate unacceptable financial risk.
  • Assess financing and capital adequacy and options for raising additional capital, if necessary.
  • Conduct due diligence research on underlying assets considered for disposition and acquisition.
  • Explore strategic alternatives, including options for mergers, acquisitions and restructuring.


Source: www.protiviti.com/economiccrisis

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.