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.