Sep 15, 2020 MicroBilt News
When it comes to risk management for businesses, the new main concern is the old main concern – fiscal uncertainty. While it may sound like the same old story, the current situation with the COVID-19 pandemic is leaving huge amounts of fiscal uncertainty in its wake.
Not only did the entire country shut down for the better part of three months, here we are five months later with some industries and areas showing no signs of resuming operation. That makes the markets more than a little unstable and is causing untold damage to markets, businesses, and the greater economy. These are all things that affect risk management for the average business.
Why is Fiscal Uncertainty so Important from a Risk Management Perspective?
Fiscal uncertainty impacts nearly every facet of business in the modern age. In other words, it is no small thing. Think of all the questions businesses are facing and must consider when making decisions for an uncertain future. Questions like:
- When will the economy fully reopen? Will it fully reopen?
- How many businesses, when all is said and done, will fall due to long-term closures?
- How long before consumer confidence returns and people begin spending again?
- How long will the pandemic last?
- Can your business survive in the current economic climate?
- What if we have to shut down again? Will your business survive if that happens?
Many questions remain for businesses to consider when planning budgets, planning new products, planning spending, and more. The current fiscal uncertainty, for instance, can create issues for businesses that involve:
- Interest rates
- Currency exchanges
The bottom line is that fiscal uncertainty is often followed by periods of slow economic growth. The one saving grace is that the economy was on the upswing before Coronavirus hit. While the markets are uncertain, there is fair confidence among consumers, that we will bounce back quickly once the economy fully reopens. The only problem is that no one seems to know when that time will come.
How Can Businesses Manage Risks in These Uncertain Times?
This is what it all comes down to. Businesses today want to do whatever it takes to make sure they are still here, and poised for growth, once the economy reopens. To make that happen, you have to make wise decisions during the COVID-19 crisis so that you’re still standing once the crisis ends. The bottom line is that you must adjust your decisioning to reflect an even greater risk-averse stance that keeps the current situation and market uncertainty in mind when making all major decisions for your business.
Microbilt seeks to be a partner with your business as you face many decisions in the future. We offer excellent tools to help businesses with small degrees of risk, such as fraud prevention (with fraud on the rise during the COVID crisis, it’s a good time to make this investment) and more. Contact us today to learn about the many ways we can help businesses reduce risks during these uncertain times.