The number of new infections and deaths continues to rise rapidly and, as yet, there are no signs of Covid-19 being brought under control. Whilst the vast majority of infections and deaths have thus far occurred in China, concern is rising across the world that a global pandemic is upon us.
Businesses in Asia and some parts of Europe have been severely impacted. Shopping malls and restaurants are deserted, whilst travel and tourism revenues have collapsed. It is possible that Covid-19 may burn out as temperatures start to rise during Spring and into Summer in the northern hemisphere, but at this point, nobody knows.
It is therefore important that businesses are proactive in assessing their capability to withstand disruption from both an operational and a financial standpoint, and that they act decisively to mitigate actual or potential issues. This article addresses the financial impact of Covid-19.