How Should Companies Cope with the Chilling "Economic Winter"?
China Business News April 24, 2009
Mr. Siu Fung Chan, Vice President of Monitor Group China, suggested that companies should "stress test" their corporate strategy and management system to ensure robustness under different possible market scenarios in the face of the current crisis. He mentioned that companies are more prone to errors if their investment decisions are not strategy-driven. By auditing corporate internal management system, companies can test the effectiveness of their risk management functions, as well as the well-functioning of their organization structure and processes. He also mentioned that companies should also review their business portfolio to assess if there are any non-core and under-performing business which may be disposed of or fixed. Mr. Chan cautioned companies not to cut costs across-the-board as a reflex response to the current crisis, but to carefully select the appropriate strategic measures to survive the chilling "economic winter".