CRISIS MANAGEMENT – FINANCIAL MANAGEMENT ESSENTIALS
This is the second module in the Know How to in a Crisis Programme, building on the first module, Managing your Clients and Suppliers in a Crisis.
The aim of this module is to develop essential financial skills and knowledge specifically tailored to helping small businesses survive and respond proactively in a crisis and to provide practical tools to help them plan and implement what they have learned.
Micro and very small businesses (MSMEs) should understand the need to manage their finances well.
Participants should be aware of and know how to apply the financial basics, with some simple tools available to help with that. Attitudinal and behavioural change is also vital – encouraging business managers to see finance as something they must do proactively and not just the responsibility of their external bookkeeper/accountant.
WHO WIL IT BENEFIT?
This module will benefit the following participants: Owner, managers and staff working in MSMEs or otherwise connected to them. From a family-run market stall in Tunisia to a small web-design business in Ukraine, this module is equally relevant for micro enterprises trading in either goods or services.
PARTICIPANT KNOWLEGDE LEVEL
It is assumed that participants will have very limited or no knowledge of financial concepts e.g. they may have a basic understanding of some financial terms, the financial mechanics of running a commercial business and a grasp of managing cash within the business.
The content of this module will be centred around three key management blocks:
- How to understand the financial position of the organisation
- Financial planning and making decisions integrated with operational planning including risk management
- Doing the actions that will improve financial performance (specific actions around cost, income and cash flow improvement)
In the context of a current crisis, owners and managers will need to know what stresses that could bring and what can and should be done now, to sustain their business. But they should also have a view to the post-crisis future and how improved financial management can help them to re-start or re-build their business.
Also, if an MSME has external bookkeepers or accountants, it is important they know what to expect of them during a crisis.
MODULE LEARNING OBJECTIVES
At the end of this module, participants will be able to:
- Identify core cash flows in and out of a business and those impacted during a crisis
- Make assessments of the financial position of the business before, during and after a crisis
- Stress test to assess the vulnerability of their business to potential adverse impacts that may
be faced in a crisis
- Use financial, operational planning and risk management tools and information together to
make better business decisions
- Identify where savings can be made and costs cut in a crisis situation
- Engage the company accountant to help support the business in a crisis situation
MODULE TOOLS & RESOURCES
Practical tools will be provided, including:
- Detailed guidance
- Case studies
- Useful templates
Learning will be also supported by additional resources:
- Resources from our partners, EY and PwC
- Further reading
- Sector expert videos
There are two new videos from EBRD consultants being released for the launch:
- Rony Saab: Expert View: Logistics and your supply chain in a crisis
- Emil Stefanov: Expert View: How to survive in retail
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Here is the link to the module: https://www.ebrdknowhowacademy.com/learn
The platform is better accessible on Google Chrome.
A convenient way to make use of the resource on the smartphone is to download the app through the Apple Store or Play Market.
This initiative in Turkmenistan is funded by the European Union. /// nCa, 29 June 2020