Drive Greater Resilience, ​
Less Risk in a ​
Post-COVID World​

Click here to view video with more details and information.

Crystal McDonough, Owner and Attorney McDonough Law LLC​

Karen Breen, CPA, Embark Finance & Accounting Advisory Services, Managing Director​

Judith Pearson, Woodruff Sawyer Family Office and Trustee Liability Group Leader​

Don’t Become a Statistic​

1. Business Stress Test™​

– Legal, Risk, Finance​

2. Get out of the Firefighting Mode that COVID created​.

3. Seize Control of Your Insurance Program​

– Understanding the current insurance marketplace in the context of historical challenges​.

– New world new risks​.

Business Stress Test™ – Legal​

According to a 2014 Forbes article, between 36% and 53% of US businesses are involved in at least one legal or court proceeding in any given year. ​

​Many of those businesses are sued by employees, contractors, vendors, clients, customers, and even business partners. ​

​What’s even more concerning is the fact that many of these legal issues and disputes could be prevented, or at least minimized, with the proper legal planning and compliance. ​

​It is important to do a thorough review of your operations, procedures, and legal documents to identify any holes or weaknesses that are leaving your business vulnerable to liabilities, lawsuits, and other disputes.​

Regulatory Compliance Ever Changing Rules (federal, state, local, etc.)​

Return to work policies and potential claims. ​

Layoffs may increase as stimulus packages and PPE loans go away – may trigger alleged wrongful termination, demotion, or failure to promote an employee.​

Families First Coronavirus Response Act (FFRCA) requires employers to receive paid sick leave.​

Family & Medical Leave act (FMLA)​

Negligent in adhering to employment-related policies and procedures, such as improper training​.

Americans with Disabilities Act (ADA) how will long haulers be classified? What accommodations must be made?​

Privacy and HIPPA laws​

Worker Adjustment and Retraining Notification (WARN) Act claim for unpaid wages.​

OSHA guidelines​

Will your company require vaccines? ​

Yes, but some employees may be excluded.​

-​ Employees with disabilities​.

-​ Employees with sincerely held religious beliefs.​

-​ Employees covered by collective bargaining agreements. ​

​What accommodations must be provided?​

​Can I require proof of vaccinations of employees and guests? ​

​How does this affect my employment practices, fiduciary liability and workers compensation policies be affected?​

Business Stress Test™ – Risk​

Seize Control of Your Insurance Program​

Understanding the current insurance marketplace in the context of historical challenges​.

New World New Risks​

While the magnitude of D&O claims isn’t different ​the types claims are challenging.​

Adequacy of disclosure in your financial/business environment.

Balancing and prioritizing diverse and complex interest of stakeholders (shareholders, employees, customers, beneficiaries).

Regulatory compliance

Reputational risk

Business Stress Test™ – Finance​

Build RESILIENCE & REINVENT How Finance Teams Operate ​

Cash Remains King!​

Optimize Working Capital​.

Don’t just focus on P/L at the expense of the balance sheet​.

Accelerate receipts, manage inventory turn, extend payments.​

Review tax planning and seek accelerated refund claims​.

Current ratio above 1.0 is key​.

Always Be in a State of Finance Readiness​

GAAP vs cash basis financials​.

​Agile Forecasting – run multiple scenarios, stress test debt covenants​.

​Ensure financials enable a lender or investor to understand your business.​

Sell side due diligence – act as though you’re going to sell and prepare the documents that a buyer would be interested in​.

Revenue, Expenses, Margins, Trends, Client Concentration, Forecasts, Working Capital, etc​.

Finance Automation is Front and Center​

Reduce Time to Close = Better + More Timely Decision Making​

​Digital Transformation.

Automation of manual processes.

Integrate Disparate Systems – Move out of Excel!

Data analytics, Dashboard/Management Reporting.

What gets measured gets managed.

Why do it? ​Per KPMG ​2021 Report​

A transformed finance function transformed can deliver:​

45% cut in general accounting costs​.

15% improvement in working capital​.

50% reduction in manual reconciliations​.

Digitization of the Workplace – Legal/Risk​

Contracts and Agreements​

Subcontractors’ vs Employee agreements, vendors, leases, licenses, etc.​

Cyber: Combination of Increased Threats, Cyberattacks and Malware Continue​
in Remote Workplace​

1. Lack of two factor authentication​.

2. Cloud based breaches.​

a. Misconfigured security measures​.

b. Lack of monitoring security.​

3. Employee connectivity not as robust as corporate environment​.

4. Cyber security staffing (4 million cybersecurity jobs unfilled)​.