We’re living in a volatile economic environment with a landscape on its way toward a slowdown. This can mean uncertainty for your business, but there are ways to mitigate the risk. Managing, allocating, and preserving your cash is important to stay ahead. Taking advantage of technology and leveraging data science to look at the trends of your customers, regions, and different emerging countries need to be top of mind as you create your plan for the rest of 2019.
Discussing more on these pressing topics during a recent webinar, James Daly, President and CEO of the Americas region at Euler Hermes, and Dan North, Chief Economist, North America at Euler Hermes spoke with Anjan Roy, Global Finance Executive at General Electric (GE) about the best practices CFOs should take to prepare for the uncertainties in the months ahead, as well as where the economy is on a global scale.
Read below some of the main takeaways from their roundtable discussion.
Question: What economic factors are affecting organizations?
Global economies varying from region to region are showing signs of uncertainty in their growth. There are a few unpredictable events that are affecting performances just as much as the economic downturn.
For example, a few companies in Canada who grow and process canola oil send most of their oil to China. Because of the current trade dispute with China, they have nowhere to send the oil, leaving them with unpaid invoices and excess products. These organizations are now in an unfortunate bind because of the uncertainty of change in the way the world is evolving in terms of global trading relations.
Another example is the lack of preparation for the future and evolving with the times. For example, we have Toys“R”Us and Sports Authority, two giant retailers in the U.S. that didn’t and couldn’t compete against the Amazon’s of this world because they didn’t future-proof their business and evolve with the changing landscape. In order to invest in your business, you need to think about if you will still be relevant in years to come. Sometimes that means doing something you wouldn’t normally do, like partnering with your competitors or working with organizations in sectors similar to yours to see what’s going on and what trends are out there.