This is a thought leadership article by PrimeGlobal firm AUDITIA which looks at contingency plans for potential disruption caused by Coronavirus.
Last January, the Bank for International Settlements, an international financial organization owned by many central banks based in Basel, published, on climate change, a study on the future risks of a systemic financial crisis. He called these extremely disruptive potential events "green swans."
Coronavirus or COVID-19 is having unprecedented economic effects. As published at the end of last week the newspaper EL MUNDO in its digital version: “The London-based Capital Economics consultancy estimates that the outbreak will cost more than US $ 280,000 million in just the first three months of 2020. That is more than the entire annual budget of the European Union, the annual income of Microsoft or Apple, and eight times the annual budget of the Nigerian government, for example. ”
In view of what was happening in China, a few weeks ago I asked some of our clients directly how the closure of factories in the Asian country was affecting their supply chain. Some had a very diversified supply chain and did not depend solely on China, others worked for campaigns and months ago they had enough stocks in their warehouses to cover the following season.
Others had merchandise shipped on the vessel and crossed their fingers it arrives without more problems to the harbour of destination, they did not have much hope about the containers pending shipping, others only hoped that the crisis would be solved soon.
First thought was for the supply chain, but then, along with the international spread of contagions, came the cancellation of the Mobile World Congress, other international fairs and sport events and, finally, last week financial markets collapsed around the world.
Our clients and ourselves are working on contingency plans to be able to continue working from home, under quarantine ... if necessary. Last Friday, Spanish Social Security clarified that workers in preventive isolation from the virus were considered in a situation of temporary disability (work leave) for common illness, when meeting other requirements.
We live in a global world and today in China a microorganism composed of genetic material protected by a protein envelope introducing itself as a parasite in a cell to reproduce in it, like a butterfly flutter, leaves a bride in the centre of the United States without her dress and, in between, a few fatalities.
In this world, the map of risks and contingencies has changed radically due to the effect of globalization. It has not been necessary to wait for the “green swan” of the climate catastrophe to learn that small, medium and large companies, governments and supranational organizations must protect themselves from the most unimaginable disruptive events when trying to ensure their continuity.
AUDITIA Audit, Tax and Advisory
AUDITIA, with its over 37 years of experience in the market, has a recognized seriousness and prestige. Since the very beginning, the philosophy of the firm has been to answer to the client’s needs through the following: benefit, profitability, growth and continuity. To provide this kind of service requires three axes: qualified staff, specialization and experience. Our staff is sourced by recognised practitioners with the degrees and training required for any particular area of specialization. The areas of service of the Firm are Audit and Assurance, Tax, Accounting, Mercantile and Labour and Business Consulting. We are delivering those services to a national and international multi-industry clientele, based in the country or operating in it.Learn more