What does it mean to be financially resilient?
Well, there's no question that today cash is king,
but financial resilience is also about being able
to balance the trade off between minimising costs
and maximising flexibility.
Do you have the right mechanisms in place
to capitalise on potential future opportunities
and also withstand the greatest financial shocks?
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So there are a number of things
that senior executives can do today to help
their organisations become more financially resilient.
The first is: understand your starting point.
For those who are less prepared,
engaging in no-regrets moves
like reevaluating the cost structure
and shortening forecasting cycles.
But regardless, it's critically important
to also get the investor story right,
to have clear messaging for external investors
in the broader community around the strategy
and the actions that are being taken.
It really comes down to financial steering
and the planning process.
Gone are the days of the annual planning process
that's done at a very detailed level,
and in are the days of much more dynamic
and flexible planning that is done throughout the year.
Having a very clear understanding
of how operational drivers connect to financial outcomes
and having the data and systems in place
that enable that type of flexibility and visibility.
Having the right mechanisms in place will allow
for resource reallocation dynamically throughout the year
so that the organisation can adjust
to changing external market conditions
and evolving internal strategy.