"The biggest concern for UK CFOs in 2012 is the risk of a break-up of the euro. CFOs attach a 37% probability to one or more members of the Single Currency leaving the euro in 2012" - Deloitte CFO Survey.
During recent months, market sentiment on a possible collapse of the Euro has changed from “virtually impossible” to “not inconceivable”.
The impact of uncertainty in Greece and a possible Eurozone collapse on UK corporates could be material yet most organisations do not seem to be prepared for, or fully understand, this impact. Are executives denying the crisis or is the uncertainty simply too great for companies to prepare for the unknown?
All businesses are being impacted by the current economic uncertainty and many not prepared for, or fully iundertsand the impact of the crisis. This is surprising given that the financial crisis seems to have become the ‘new normal’.
The likely winners in this environment are the businesses that have considered the possible outcomes, have reflected them in their planning and are prepared for operations in the circumstances of a failure of the currency or its new status in a post-crisis world.
At a minimum every company should have a plan in place covering:
Deloitte has a leading practice in applying exercises, simulations and war games to develop and test scenario based contingency plans – resulting in more resilient plans for Finance and business operations. For more information on how we can help your organisations prepare for the worst, download our “focusing on value protection or value creation?” insight below.