Five ways your business can respond

The spread of the novel coronavirus (COVID-19) impacts many businesses. In a fast-changing situation, it’s important to have a plan in place. Here are our five suggestions, providing a guide for your firm.

• In an effort to halt contagion, employees in affected countries have been unable to work from their regular workplace.
• Ensure you can contact your staff and share information at short notice. Have a business continuity plan which enables remote working.
• Consider technology to enable this, such as video conferencing, through company or personal computers.
• If necessary, split teams across multiple sites or rotate office-based staff with those working remotely.
• Follow World Health Organisation, governmental and public health official updates - and keep employees updated.

• You can unearth hidden dependencies through reviewing your supply chain from end to end, identifying your suppliers’ supply source down to component level and understanding who your customers sell onto.
• Undertake a risk assessment of contractual commitments and potential use of clauses relating to unforeseeable circumstances, by you or by your buyers and suppliers.
• Identify and connect with alternative supply options, right down to the component level.

• Enforced office or factory closures and disruption to transport services – including roads, ports and loading facilities – could impact on goods being delivered and documents being processed on time.
• Map your dependencies, ensure you have visibility and a plan for disruptions – for example, using air freight in the event shipping is restricted.
• Anticipate disruption to service providers – from legal services to customs checks.
• Consider implications right across your operations - from sourcing to production to distribution.

• Replicate this exercise to plan for other potential disruptions – such as natural disasters, political instability or cyber-attack.
• Develop response protocols and internal chains of command for each scenario.
• Contingency planning for different scenarios will stand any business in good stead.

• Prepare for changes in market conditions including demand, price, and foreign exchange volatility.
• Stress test your working capital, as flows of goods and services are interrupted and consider any support you may offer your suppliers.
• Where necessary, build your inventory selectively and consider insurance requirements if interruptions occur.
• Speak to your bank about immediate support and building resilience against potential disruption.