The board of directors carries special responsibilities in times of crisis. Following the paper of our colleagues at Schellenberg Wittmer, we would like to share our view.
A board is responsible for the strategic development and oversight of a company. This overall responsibility for the management of the company includes financial planning as well. In this regard, crisis management is a core responsibility of the board. Protecting and strengthening the liquidity and cash cycle is essential today.
Staying on top of the development of revenue, costs, and liquidity builds the basis. In addition, the board proactively plans scenarios that might involve credit rating downgrades or credit line withdrawals. This may result in the board actively striving for diversification of liquidity and financing instruments to arrive at a well-balanced position.
Alternative finance providers can be a valuable addition in uncertain times like these. At Pactum, we believe in long-term strategic success – regardless of external factors. Therefore, we choose our corporate clients very carefully and based on rigorous due diligence. Allowing our clients to benefit from the freeing up the liquidity tied up in the supply chain is our core competence.
Artycle by Schellenberg Wittmer: