What kind of measures can the CFO take to prevent the business from getting into a financial crisis? You can use any source, but do not quote exactly, summarize it in your sentences, not more than half a page, list briefly.

CFO should take the following steps to prevent company from going to financial crisis -

Launch a cash war room

An important tenant of this scenario planning is prioritizing cash flow. As cash flows strengthen, a company is in a better position to withstand the uncertainty and negative consequences of a crisis.

Among several protective and proactive actions, it is suggested the CFO should focus on launching a cash war room.

Companies must be willing to regularly review opportunities available to raise capital so as to improve cash flows, as well as locate any areas of the businesses where savings can be made. By working proactively to strengthen financial preparedness, the CFO can evaluate where and how the company can provide additional liquidity.

Bolster productivity

it is suggested that companies that pursued productivity improvements more often and more frequently than others, created capacity for growth during recovery.

The CFO’s evaluation of core critical areas such as R&D and IT could reveal hidden opportunities to optimize the company’s asset base and thereby improve productivity in these areas.

one should emphasize on  opportunities to implement digital-first business procedures, including collaboration tools that can be crucial to efficiency. Never has this been more relevant than at a time when businesses all over the world are grappling with how to ensure their workforces are able to work remotely and remain ultra-mobile to protect business continuity in the future.

Looking ahead

Protecting a company throughout this crisis is of course the responsibility of the entire executive team – no CFO can tackle a crisis alone. But without healthy cash flow and high levels of productivity, it is exceedingly difficult to put the necessary measures in place to support both employees and customers. Implementing a strategic plan, led by the CFO, is an important step towards weathering this storm and ensuring there is hope of future growth on the other side.