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