In order to address the challenges faced by COVID-19, businesses should prioritise effective communication, both internally and with investors, in relation to the impact of the current situation and an outline of any steps taken to minimise disruption. Where required, businesses should also ensure compliance with any continuous disclosure requirements, particularly in cases where COVID-19 poses a threat to the market value of the company’s securities.
The importance of employee health and safety has already been stressed but is a paramount consideration for businesses going into the future, particularly where a majority of employees may end up being required to work remotely. As a result, businesses should ensure they have necessary systems in place to enable remote working, including sufficient bandwidth and server processing power, whilst cross-training staff to prepare for coverage gaps for any essential functions.
As COVID-19 will undeniably have an impact on solvency, it is also important for a business to continually monitor cashflow and make adjustments to budget, including the postponement of any discretionary spending, to ensure the business does not become insolvent or incur a debt whilst, or in the process of becoming, insolvent.