What’s next? The 5 principles of successful crisis management

06/18/20 • 34 min

Amid the excitement of getting back to a semblance of business as usual, you’re probably asking yourself a lot of questions—as in, what is the new normal and where do I go from here? This podcast is the 2nd episode in a new series for CFOs, controllers—really, anyone in finance—asking big questions, like: how do we emerge from a crisis stronger than before? Each week, we’ll focus on a different area that may need your focus in this period of recovery. This week, as preparedness is more relevant than ever, host Heather Horn sits down with Kristin Rivera, PwC’s Global Crisis Centre leader, to discuss the five actions that you, your team, and your business can take to emerge stronger from any crisis.

Topics include:

1:05 - Background. Crisis management is the process of responding to unplanned events in a thoughtful way. Kristin sets the stage for what to do when knocked off your strategy.
4:55 - The survey. Kristin describes PwC’s Global Crisis Survey—compiling data from over 4,000 individual crises to show how companies can manage crises more effectively.
9:34 - Survey findings. Kristin explains the five actions that will help your business emerge stronger from any crisis.
11:04 - Allocating a budget. Putting resources behind building a crisis management program is the first step.
15:48 - Testing your plan. Having a paper plan is not enough—practicing is important.
18:22 - Fact-based approach. Establish what facts are known and recognize what you don’t know.
24:50 - Root cause analysis. After the crisis, evaluate what you could have done better and operationalize your findings.
27:44 - Act as a team. Focus on your company’s values and mission to align your response.

Kristin Rivera serves as PwC’s Global Forensics Leader, overseeing a practice of over 3,500 professionals operating in more than 70 countries. In addition, Kristin also leads PwC's Global Crisis Centre, which helps companies and business leaders around the globe prepare for, respond to, and emerge stronger from crisis and other unexpected events.

Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].

Topics include:

1:05 - Background. Crisis management is the process of responding to unplanned events in a thoughtful way. Kristin sets the stage for what to do when knocked off your strategy.
4:55 - The survey. Kristin describes PwC’s Global Crisis Survey—compiling data from over 4,000 individual crises to show how companies can manage crises more effectively.
9:34 - Survey findings. Kristin explains the five actions that will help your business emerge stronger from any crisis.
11:04 - Allocating a budget. Putting resources behind building a crisis management program is the first step.
15:48 - Testing your plan. Having a paper plan is not enough—practicing is important.
18:22 - Fact-based approach. Establish what facts are known and recognize what you don’t know.
24:50 - Root cause analysis. After the crisis, evaluate what you could have done better and operationalize your findings.
27:44 - Act as a team. Focus on your company’s values and mission to align your response.

Previous Episode

Impairments: What lessons learned from Q1 may mean for Q2

As companies look ahead to their Q2 reports, what lessons can be learned about impairments from Q1? Heather Horn is joined by PwC partners to share trends observed in impairments recorded in March and April.

Topics include:

1:05 - Overview. We begin with a discussion of the inherent challenges in assessing impairment in the current environment.
3:47 - Q1 trends. We then dive into the analysis, highlighting key themes and whether there are any indications of more triggering events and impairments at the end of Q2.
11:16 - Sector observations. We take a look at the data from a sector perspective. We examine the differences between industries that were immediately impacted and the companies that may just now be feeling the impact of the downturn.
16:00 - Triggering events. The most common triggering events related to declining cash flows and restructurings. Andreas walks us through specific examples.
23:46 - Key takeaways. We close by discussing some of the factors companies need to be thinking about as they look ahead to Q2 impairment testing.

Andreas Ohl is a partner in PwC's National office where he focuses on mergers and acquisitions under US GAAP and IFRS. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's In-Process R&D guide, and has served as a member of the FASB's Valuation Resource Group.

John Benedett is a Partner in the Capital Markets and Accounting Advisory practice at PwC. John advises large US and international companies in the accounting for complex transactions and the implications of financial and accounting structuring. His deep knowledge of US GAAP and IFRS financial reporting rules allows him to support clients through these challenging endeavors.

Next Episode

The quarter close - Q2 2020

PwC provides a summary of the latest accounting, financial reporting, SEC, and regulatory updates to support your quarterly reporting.
As global restrictions begin to ease, business leaders are looking ahead to restarting operations - and in many cases restructuring and reimagining those operations - to emerge stronger after the pandemic. Many are considering fundamental changes to the ways business is conducted, including developing cost containment strategies, diversifying supply chains, and making other operational modifications.

In this edition of The quarter close, we focus on COVID-19-related accounting and reporting considerations and other topics, including: