The repercussions of the rolling global crisis triggered by COVID-19 are being felt everywhere. We have seen a number of governments start to follow central banks in responding to this fast-evolving situation by enacting emergency legislation and introducing extraordinary fiscal measures to support their economies and mitigate direct impacts on businesses and individuals.
- While markets have cautiously welcomed this support, it's clear that business operations have been disrupted in a meaningful way — with direct implications for treasury operations.
- Treasury professionals are at once having to deal with interlocking risks regarding people, systems and execution of payments across their banking partners and supply chains.
- To this end, we have been working closely with our clients to help them identify potential scenarios and provide solutions for acute pain points that pose risks to operational continuity.
- This includes risks around cash repatriation and funding, gaps in coordination that may impact payment flows and potential inaccessibility to critical systems from remote working environments.
Some tips on maintaining continuity, based on what we observed in the first few months of the crisis:
Adjust
- Adjust alternate work arrangements / contingency for greater balance and diversity to optimize coverage and continuity for an extended period.
- Create system redundancy, such as operating in multiple sites simultaneously during peak times of the day.
- Cross-train personnel so that staff are ready to assume multiple roles, if needed.
- Where possible, move applications and capabilities to digital channels to facilitate client-facing activities and to scale up self-service functions.
Communicate
- Ensure that your crisis communication plan covers both internal and external stakeholders.
- Reach out to your customers, key suppliers and third-party vendors to help them understand your current contingency and business continuity set-up.
Partner
- Work with your key suppliers, third-party vendors and banking partners to move to digital and automated channels where possible.
- Work together with your banking partners and understand their contingency plans and how they can help you with your current or foreseeable challenges (e.g., eSignature).
Be alert
- Remain alert for cyberattacks and fraud that are likely to increase in times of stress and disruption.
Be bold. Challenge yourself. Challenge your bank partners.
In these uncertain times, we thank you again for your continued trust in J.P. Morgan. Please contact your J.P. Morgan representative for further information.
Webcast Series:How Treasury and Payments can Lead in a Dynamic Environment
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Maintaining Treasury Operations Continuity in Turbulent Times
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Harnessing the Power of Digital to Manage Disruption
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Staying Focused on Cybersecurity and Fraud Prevention
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Optimizing Working Capital for Today’s Challenges
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