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We live in turbulent times and especially now it is important to keep a cool head in order to make valid decisions. This requires a solid foundation. A comprehen-sive view of the current situation. Global monitoring makes this possible. This is the only way you will remain capable of acting in the long term. A must-read for every CFO and risk manager.
Many companies will be facing exciting but also difficult challenges in the second quar-ter of 2020. The current crisis will continue to have economic consequences well into 2021. Maybe even longer. There are many reasons for this. Budgets have been frozen, goods and components are not produced or are stuck in quarantine. In many places the supply chain has completely collapsed or is about to collapse. In China, production is partly starting up again, but the shortfall is so enormous that this is nevertheless hav-ing a significant impact on production chains in other countries. There is also another problem. Although China is producing again, lockdowns are only just being established in other countries. So no one goes into the companies to manufacture anything there. There are exceptions in particularly critical areas, but even these can be severely re-stricted. And not only the production is frozen. The demand for many products and services is also idle.
Although this situation will change again over time, it will mean an increase in defaults in the short and long term. State aid measures will only delay this increase for some time, but unfortunately will not be able to prevent it permanently. Many companies will not survive the crisis, but others can use it as an opportunity and even grow. But only those who can steer their own company through this economic storm with foresight. In order for you and your company to belong to the latter, you must set up your monitor-ing globally and on a broad basis.
The above list shows very impressively how many points you need to have on the screen to be able to make a really valid risk assessment. In a global context, relying purely on one's own gut feeling is more than negligent. It endangers not only your own job, but the whole company. Today, it is no longer necessary to stare into a crystal ball and play guess by number.
Modern solutions such as D&B Credit allow worldwide monitoring in over 200 countries. Fully automated. In times of crisis, it is particularly important to cooperate only with solvent companies and to understand the company's own interdependencies. This is the only way you can be sure that you will not be caught cold by a default. And the current crisis will lead to a large number of defaults. Either because customers can no longer pay or even because they currently do not want to pay.
Fluctuating payment morale has been a major problem in international cooperation over the past few years, and the crisis has made it more than ever a gamble which companies you can rely on and which you cannot. Monitoring is your ace up your sleeve in this game. You gain precise insight into the health and payment morale of the company and can thus avoid risks in a valid and solid way and on the other hand take advantage of opportunities that remain hidden to others. It is therefore an investment in the health of your company and of absolute, existential importance.
Unfortunately, many companies are learning this hard lesson of economic life, as they are losing their sources of income, which in turn means that they themselves cannot pay their invoices and thus lose a great deal of confidence and will not be able to catch up.
So: Keep your business healthy by using modern, global monitoring to gain a compre-hensive overview and make the right decisions based on valid data. #NoMoreBadDecisions