ISSUE 54 — SEP 2020
COVID-19
Business implications The ‘new normal’ is a term that is currently being used and heard over and over again. Maintaining business resilience during these times requires several organisational changes which can be very challenging. The path to recovery can involve making difficult decisions, whether they be financial, operational, commercial or community orientated, to suit the uncertainty of times we are currently in. KPMG, who are experts in audit and assurance, tax and advisory, have outlined four stages that they see as the path through recovery. Reaction.
All organisations are simultaneously impacted as professional and personal lives are disrupted. Volatility and uncertainty permeate society as the primary focus is on limiting damage to lives and livelihoods as we weather the unprecedented storm.
Resilience.
Recovery. Anxiety passes and hiring, investment and consumer sentiment cautiously improve. Recovery paths for organisations will vary based on ability to limit damage from the Reaction stage, length and severity of recession, post COVID-19 industry demand and willingness to adapt.
Controls loosen as virus spread is contained and/ or a vaccination or cure is available. Consumer demand begins to return but is constrained by lost wages, investment losses and recession fears.
New Reality.
All Victorians are facing these current challenges, and working towards recovery and adapting to a ‘Covid and post-Covid life’ will be extremely difficult. Imbedding resilience into everyday business practices, takes effort from all parties and requires everyone to work together.
https://assets.kpmg/content/dam/kpmg/au/ pdf/2020/covid-19-guide-to-maintaining-businessresilience.pdf
KPMG have provided a number of resources to the public.
A number of enduring shifts will remain post recovery as many learnt behaviours born out of the crisis will become central to the new normal.
Link to Government assistance programs at a glance: https://assets.kpmg/content/dam/kpmg/ au/pdf/2020/covid-19-government-assistanceprograms.pdf
Click or type in this link to find material which will further help you understand your business’ exposure to disruption caused by COVID-19, and could help you position your business to be more resilient. 9
