The crisis imposed a paradigm shift on corporate planning and management. The pre-crisis stability of growing markets and following the trend strategies has vanished. The crisis changed the status quo; revenues decreased with 50% in some industries from one month to another; financial markets disappeared over night. The prior relative ease of forecasting was replaced with a sense of prepare for the unexpected. This situation put the limelight on:
- counterparty risk management
- liquidity and cash management
- risk management and hedging strategies
- deleveraging
- develop bank relations and new strategies
- new hedging strategies
- improve technical integration
- improve reporting capabilities
- be agile and do not take anything for granted
- take advantage of the opportunities arising e.g. opportunistic financing
The actions corporate management takes as a response:
- improved market and sales focus
- flexible cost structures
- flexible capital expenditure schemes where projects can be postponed or accelerated depending on conditions
- take advantage of the opportunities arising e.g. acquisitions of corporates and markets
Treasury and corporate management monitor the macro economic development more closely; this includes generic parameters (growth rates, inflation etc) and company specific (key currency crosses, commodity prices etc). Cash generation metrics receive increased attention.
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