All CFO's are likely already through at least part of this list now.
Run a number of scenarios (forced closure for a period of time/reduced revenues/delayed cash receipts), run 13-week short term cash flow & complete line by line review on all cash flows for each scenario (by expense category)
Identify the payments that are not essential - prioritise business critical payments and cancel DD payments (pay on invoice)
Have you put non-essential capital projects on hold?
Revisit who has authority to sign off expenditure or more importantly incur costs on behalf of the company - approval should now be FD & CEO only?
Review expense policy - only business critical expenses should be signed off
All RemCo matters need to be considered (Pay rise/bonus etc.)
Consider opportunities for Government support in light of daily “Boris updates” – e.g. business rates holidays, British Business Bank liquidity support loans (up to £5m). An evolving picture. See our Guidance and information pack here.
Consider potential impacts on credit insurance and associated working capital impact
Business Continuity Plan
Simulate BCP (e.g. Can we split teams into A & B/Can your network accommodate home working (if applicable)/can you zone the workplace)?
Have you got legal and corporate finance support lined up?
How will you get audit sign off/covenant compliance certificates?
Beware presentation of debt as “current liability” if a waiver is not obtained before a year-end covenant breach (retrospective doesn’t work)
Review all available bank facilities and consider full draw-down after taking appropriate advice (legal/banking docs etc.)
Set up a regular board call [at least weekly] to discuss liquidity/workforce/short term cash flow etc.
All material strategies/decisions should go through the normal Board approval process
Communication - Bank
Present contingency plans & understand support available post-Board sign off
Communication - Customers
Have you engaged with your customers to keep them updated? What support might your customers be able to give you? (Example – payment terms)
Communication - Suppliers
Have you asked for support from suppliers?
Communication - Workforce
Have you nominated someone internally to own colleague communications?
Review insurance – consider/implement business interruption or credit insurance - understand cover and route/process to claim as well as scale of cover
Are we acting responsibly, are there any issues where we could be accused of endangering customers, colleagues, suppliers etc.?
Do you have a central committee who is responsible for all Covid-19 related issues, risk mitigation and management?
Do you have an emergency response protocol to an infected employee confirmation who was/is present at the workplace
Review banking docs to understand legal position. Be aware of bear trap requirements e.g. RCF clean-down
Are you engaging with your peers and regulatory bodies to understand how your industry is responding?
Have you reviewed sole source supplier concentration for dual source optionality/risk mitigation?
Freeze on non-essential recruitment?
Can you identify the vulnerable groups in your workforce? (over 60/underlying health conditions)
Can you identify temporary wage mitigation options?
Have you stopped overtime?
Have you removed agency staff?