“Economic Crisis a Time for Self-Analyis”1
The Financial Crisis Team at Robert Half International recommends the following steps to prepare for possible adverse business conditions:
§ 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 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.
1 Journal of Accountancy, January 2009, page 23