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

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