Finance professionals are key in supporting their businesses through the coronavirus (COVID-19) crisis. Most will be urgently working through the issues and helping their businesses respond. This guide to financial management responds to member feedback and aims to help members consider the actions they may need to take.
Coronavirus and business interruption
The spread of coronavirus (COVID-19) has resulted in significant disruption to business activity. This page collects together ICAEW insights and externally-produced resources which offer practical advice on supply chain risks, travel and insurance.
Why it’s imperative for businesses to have robust plans in place to deal with the outbreak and mitigate disaster.
11 March 2020: there are a number of provisions in Budget 2020 to help businesses cope with COVID-19 which expand upon measures previously announced.
5 March 2020: Flybe’s entry into administration is bad news for customers, employees, creditors, suppliers, and even other airlines. But what does it mean for the UK regions, the UK’s industrial strategy and the environment?
14 February 2020: coronavirus reports are shocking and sad; but the outbreak also has impacts for business. We ask ICAEW’s business and financial services experts how the virus should shift business thinking.
COVID-19 raises a range of financial services issues which firms and businesses will be managing through over the next weeks and months.
Based on a recent faculty event, this article by Nick Wildgoose outlines finance’s key role in conveying the potential impact of supplier failure, providing appropriate safeguards against it, and preparing for any necessary actions.
UK government response
Information on loans and finance supported by the Coronavirus Business Interruption Loan Scheme, including details of how to apply, a quick eligibility checklist for SMEs and a list of the 40+ accredited lenders. There is a dedicated page for smaller businesses and business advisors.
Advice from the Charity Commission on running charities during the coronavirus pandemic, including information on using reserves and restricted funds; cancelling or postponing AGMs and other key meetings; using video, teleconferencing and the internet in place of face-to-face meetings; and reporting serious incidents.
Government paper setting out proposed elements of the new legislation and why they are needed. This includes details of temporary changes to Statutory Sick Pay (SSP) provisions.
Advice for charities on whether COVID-19 related incidents need to be reported as serious incidents to the Charity Commission, reiterating that is ultimately the responsibility of charity trustees to decide whether an incident is significant and should be reported.
Information about measures announced at Budget 2020 to support public services, individuals and businesses through the economic disruption caused by the coronavirus – including additional funding, Statutory Sick Pay changes, and an increase in the Business Rates retail discount for one year.
The government's action plan outlines what it has done so far in response to the current coronavirus outbreak and what it plans to do next, depending on how the outbreak develops. It highlights HMRC's existing Time To Pay arrangements for businesses facing short-term cash flow issues (for example, as the result of subdued demand).
Government guidance for employers and businesses on the novel coronavirus, how to help prevent spread of respiratory infections, what to do if someone suspected or confirmed to have COVID-19 has been in business settings, what advice to give to individuals who have travelled to specific areas, actions to take if staff come into contact with someone who is self-isolating or is a possible or confirmed case of COVID-19.
A statement issued by the Association of British Insurers on the closure of businesses and the impact of Coronavirus (COVID-19).
Companies planning their AGM should be considering contingency plans in light of the spread of Covid-19. Checking relevant provisions of the articles of association and coordinating with registrars and venue providers is key, as is ensuring shareholders are kept regularly updated and are given the maximum opportunity to have their say. This guidance offers suggestions reflecting UK company law and associated regulation.
Regularly updated hub providing advice on how organisations can prepare and respond to potential business impacts of COVID-19. Articles focus on crisis planning, effective communication, the workforce, supply chain, and importance of reliable information. Country-specific information is also available covering Australia, China, Germany, Malaysia, Singapore, South Africa, UK, US, and Vietnam.
Guide for businesses on how to set up their COVID-19 response. It illustrates three potential scenarios to help inform crisis planning and outlines the possible impact of each scenario on the workforce, supply chain and the economy. The guide contains an example strategy and operating model checklist alongside detailed checklists of response strategy considerations.
Advice from the Association of Corporate Treasurers on immediate and long term steps to tackle the impact of the coronavirus on business covering liquidity, operations and funding.
Detailed checklist from the law firm Allen & Overy highlighting key issues for businesses to consider in managing the impact of the pandemic. The advice covers coordinating your response; managing the impact on the workforce; managing contractual risks; managing financial arrangements; insolvency risks; maintaining appropriate data and documents; potential insurance claims; managing wider operational risk; the impact on potential M&A transactions; and staying up to date on your rights and obligations.
A collection of Global Deloitte insights to help businesses manage and mitigate the risk of the COVID-19 coronavirus, including the report COVID-19: Managing cash flow during a period of crisis.
Article from McKinsey which sets out to provide business leaders with a perspective on the evolving situation and implications for their companies. The article suggests that businesses should consider three scenarios as part of their contingency planning and sets out the timelines for these. The article will be updated as the situation evolves.
Guidance from Zurich Municipal which includes a checklist focused on the steps that an organisation can take to prepare for a pandemic to minimise its impact upon business activities, employees and customers.
Impact on global supply chains
Article from the Harvard Business Review which predicts that the peak of the impact of Covid-19 on global supply chains will occur in mid-March, leading to temporary closure of assembly and manufacturing facilities.
Article from the Harvard Business Review which looks at the actions that can be taken to help manage the impact of the coronavirus crisis on your supply chain. Highlights the lessons learnt from previous large-scale supply chain disruptions.
Impact on industry sectors
Regularly updated hub from UKHospitality covering guidance and announcements for catering, hotel and other hospitality businesses in the UK. It includes information on financial support, employer advice, public health advice, contracts advice, advice on laundries, and considerations for premises licence holders.
Hub from the United Nations Conference on Trade and Development (UNCTAD) providing analysis and reports on the effects of the global pandemic on manufacturing, trade, foreign direct investment and economic growth.
Analysis, commentary and webinars from STR, the data benchmarking and analytics firm, monitoring performance data in regions around the world for the hospitality sector.
Regularly updated information on port restrictions and other measures impacting commercial shipping operations compiled by North, the marine insurance firm. Summaries are organised by country.
Daily analysis of footfall and visitor trends in retail and leisure venues in the UK and other countries from Springboard, data specialists for the retail sector, showing the impact of the coronavirus outbreak. Charts illustrate a sharp decline in UK footfall since mid-March 2020.
Regularly updated hub from the Association of Convenience Stores (ACS) providing guidance for retailers. Resources include home delivery guidance, how to claim grants and compensation, guidance on employment law and colleague support, downloadable posters for display in store, and a template letter for critical workers to download in PDF format.
Analysis from IBISWorld, the industry research firm, outlining how the spread of COVID-19 is affecting business sectors around the world (including Australia, Canada, Germany, New Zealand, the UK and the US). Summaries cover mining; utilities; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; publishing, broadcasting and telecommunications; finance and insurance; education; professional, scientific and technical services; real estate, rental and leasing; healthcare; accommodation and food services; arts, entertainment and recreation.
An updated assessment from the International Air Transport Association (IATA) comparing the impact on aviation of previous disease outbreaks with COVID-19. It highlights the potential effects in different markets of a limited spread scenario and an extensive spread scenario in terms of impact on passenger numbers and passenger revenues.
The International Air Transport Association (IATA) compares the impact on aviation of previous disease outbreaks with COVID-19. Data from February 2020 shows a 60% decline in domestic and international China passenger numbers and a potential industry-wide US$29bn loss of passenger revenues.
Briefing from the transport and logistics insurer TT Club outlining how freight forwarders, logistics service providers and other intermediaries can protect themselves legally and minimise their liabilities during disruption to freight transport and supply chains caused by the COVID-19 outbreak.
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