Preparing Your Business for Crisis: Assessing Treasury Readiness and Contingency Planning

Businesses Urged to Prioritize Emergency Planning for Treasury Operations

In light of recent global events, emergency planning has become a critical focus for businesses of all sizes. Whether facing a natural disaster, a pandemic, or a cyberattack, unexpected disruptions can have a significant impact on operations. To ensure business continuity, leaders are being urged to develop contingency plans now, before a crisis strikes.

Effective treasury risk management is key to navigating unforeseen challenges and meeting financial obligations regardless of the situation. It requires a thorough assessment of current operations and readiness to answer the question: Are we prepared for the unexpected? By solidifying crisis response strategies, organizations can equip their teams to face market disruptions with confidence and clarity.

To help businesses assess their treasury readiness, a series of questions have been outlined to guide the development of contingency plans. These questions cover key areas such as management and communications, treasury operations, and tests and reviews.

In terms of management and communications, businesses are advised to establish an emergency management team, designate a chain of command for emergencies, document internal and external communications plans, and develop internal policies and procedures for crisis scenarios.

When it comes to treasury operations, businesses should consider alternate power sources for main servers, secure data and facilities, have contingency worksites for accounting operations, ensure dispersed payment centers with banks, allocate emergency funds across different accounts, review account information for accuracy, and maintain a list of bank contacts.

Regular tests and reviews are also recommended to ensure the effectiveness of contingency plans. Businesses are encouraged to conduct tests on backup systems, audit these tests, and schedule periodic connectivity reviews with internal departments, customers, suppliers, and other key contacts.

By prioritizing communication, preparation, and testing, businesses can enhance their resilience and minimize disruptions to treasury operations during a crisis. It is also important to consider the impact on employees and their personal lives, emphasizing a culture of care and support.

For expert guidance on preparing treasury organizations for unexpected events, businesses can reach out to JPMorgan Chase experts for assistance. Contact a Commercial Banker today to build resiliency into treasury operations and ensure readiness for any crisis that may arise.