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Fortifying the Modern Finance Organization’s response to a Global Pandemic

Apr. 15 2020 by Girish Muzumdar , Solutions Architect & Pre-sales Director - CCH Tagetik Asia Pacific

Performance Management Budgeting & Planning

Where does the Office of Finance start with modelling outcomes in the time of Covid-19? Not with 2019’s data, that’s for sure. Or in fact with any historical data because nothing like this has ever hit the globalised economy. The impact and uncertainties take us into uncharted territory.

But you still need a plan.

Taken in three steps, we broke down the challenge and solutions into bite-size pieces. In the on-demand webinar “Modern Finance Organization’s response to a Global Pandemic” you can:

  • Delve into the challenges Covid-19 has thrown in our way
  • Check out what Offices of Finance are doing about them
  • See how CCH Tagetik’s Finance Transformation Platform maps a way forward

There are essentially four buckets summarizing Covid-19’s effect on business: the supply chain is disrupted like never before; the topline has been ravaged by cancelled and delayed purchases; buying patterns are all over the place meaning revenue patterns change day-to-day; and a remote workforce has become the norm almost overnight.

So what’s the Office of Finance doing about it?

That 2020 budget written so many months ago is mostly irrelevant, and you can’t extrapolate on the unprecedented. So the fall backs have fallen by the wayside. CFOs and their teams recognize that it’s time to go back to the drawing board to find out what they can do rather than mourn what they can’t. The office of the CFO is being asked to work quickly to assess the financial situation at short notice and provide recommendations to the board.

First off is identifying and adjusting key business levers. P&L, balance sheet, cashflow – they’re all being modelled to establish what is driving the business, and to create a sound basis for what-if analysis.

And with the new reality of remote working, Offices of Finance are establishing IT solutions and collaboration strategies which enable the new normal of continuous reporting.

How the CCH Tagetik Finance Transformation Platform can help?

If there is one thing which the Covid-19 pandemic has made absolutely clear (if it wasn’t clear before) it is that Cash is King. When the going gets tough for whatever reason, it is a liquidity crisis which invariably hits a business first.

This is why scenario planning is so important, which is where CCH Tagetik’s Finance Transformation Platform comes into its own.

Based on factors from the macroeconomic, such as unemployment, to business specific, such as revenue, scenario planning in the era of zero-based budgeting requires a tight grip on what are your drivers. CCH Tagetik enables you to build models of each and every line of your P&L, balance sheet and cashflow to feed into sophisticated what-if analysis.

What are the key “what-ifs” in Covid-19 era what-if analysis? It could be the impact of changing a supplier on operational expenses or the balance sheet. Or perhaps the effect of the Fed tweaking interest rates.

With the Finance Transformation Platform, set up a rolling forecast which feeds into meaningful cash-flow planning and simulation. As monthly/weekly rolling forecasts become the norm, CCH Tagetik’s built-in forecasting engine sucks in the actuals from wherever they enter the system, for real-time reliable reporting.

Enterprise-wide guided planning, configured for your business is ideally suited to coping with the reality of remote working, to manage workflow and help the FP&A guys do their job, particularly when used in conjunction with CCH Tagetik’s Collaborative Office – the ultimate tool for that “last mile” of narrative reporting. Last-minute updates in data are reflected automatically in documents, a corporate business review say, with no cutting and pasting and “different versions of the truth” to confuse the picture.

By joining the webinar, I will guide you towards how to prepare your organization to respond to all potential business impacts through continuous collaborative planning, driver-based budgeting, rolling forecasting and last-mile narrative reporting. You will discover how you can be ready for the various possible versions of the future for which resilient businesses need to prepare like never before.

Check the available dates (April 21st and 29th) here and don’t miss the chance for sharing ideas and solution!


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