The importance of resilience planning for businesses

By Edgardo “Jun-Jun” Marcelo, Jr., Senior Vice President of BDO Cash Management Services; Large Corporates & Specialized Segment

The Q3 2023 Global Risk Survey by Oxford Economics confirms geopolitical tensions related to Taiwan, Korea, and Russia-NATO are now believed to pose the greatest risk to the global economy and banking system in the near and medium term.1 Political events can disrupt operations and supply chains. Shifting foreign exchange rates and high cost of funds discourage credit demand and investor risk taking, dampening overall economic activity. Executives are aware of the urgent need to guard against risks and uncertainties. Based on SAS Institute’s study, 81% of executives believe that business resilience will reduce the impact of crises (88%) and increase market share by adapting to market conditions (87%).2  

Building actionable contingency plans to manage operational disruption requires the right partners in both the physical and financial supply chains of the business — partners who share similar values and can be trusted in times of distress. In BDO Unibank, we pride ourselves in being the financial partner of choice.  By keeping our corporate clients front and center of all our services, we know the importance of our role in their financial supply chain.  Our Transaction Banking Group’s Cash Management Services team knows what it takes to offer the right level of products and services to keep businesses going.

BDO Cash Management Services provides real-time information and immediate funds availability to minimize supply chain interruptions. Cash inflows and outflows can be closely monitored via BDO Business Online Banking. This helps improve reconciliation and reduces the risk of late payment bookings, while optimizing and enhancing cash flow stability. Information services provide insights into cash flow forecasting, helping with working capital efficiency. By supplying timely and comprehensive information and improving cash flow, corporations can minimize their reliance on external financing and strategically plan for short, medium and long term funds allocation to improve overall profitability.

A robust financial management strategy is vital to resilience planning. It enables businesses to maintain strong liquidity and cash reserves especially during times of crisis. True to its service philosophy “We find ways,” BDO finds ways to provide the right solutions and accurate information integral in keeping the operations going. By knowing where the cash is and having easy and fast access for their payment needs, corporates can focus on the more critical and strategic activities during these challenging times.

Sources:

1 Oxford Economics. (2023). Businesses now see geopolitical tensions as key global threat. 2 Tracy Brower. (2023). Majority Of Execs Report Lack Of Business Resilience: 5 Ways To Build It.

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