CORPORATES URGED TO RETAIN. REBUILD TO WEATHER THE STORM

By Sharifah Pirdaus Syed Ali

KUALA LUMPUR, June 4  -- Corporate leaders have to find a balance between rebuilding and retaining critical current workforce and skillfully reducing reliance on large resources that place a strain on company finances.

Co-founder and managing partner of IRC Malaysia and Thailand (CnetG Asia), Raj Kumar Paramanathan said as businesses show vulnerabilities during major shocks such as the oil and gas crisis, economic, financial crisis or COVID-19, corporate leaders should pay more attention to risk management, governance and controls, with a heightened focus on sustainability and business continuity.

He said while employee layoffs and recruitment freezes are unavoidable, boards will re-examine their C-suite executives’ capabilities to manage existential threats.

“The role of the chief financial officer (CFO) will continue to evolve and become more cross-functional as they play a proactive role in driving transformation and influence change in the company. 

“Besides steering the company’s financials into a safe position, the CFO will need to build scenario planning that includes the different eventualities as a result of the pandemic, taking into consideration evolving global or regional trade regulations, tariff cost strategy, impact on supply chain and other new denominators,” he told Bernama.

Raj Kumar said while the natural response of every leader is to take rapid action that is crucial for survival and defend the financial position of the business, each crisis poses an opportunity to occupy new positions and build new advantages.

“This transformative approach requires leaders to conduct a strategic review of competitors, customers and regulatory issues, reorient investments towards newly identified opportunities and build resilience through the reinvention of the operating model,” he explained.

He noted that when a leader confronts a crisis with drastic action, cost-cutting and a cautious mindset, such mindset and behaviour will become inherent in the company’s culture, which could stifle a growth and innovation mindset.

“A transformative approach with a focus on agility and innovation will deliver growth, which in turn will increase value for shareholders, employees and society in the long run,” he said.

Raj Kumar said as the dawn breaks after the crisis, companies that have a good grasp on their competitors, customers and regulatory landscape will continue to stay ahead of the competition.

“This is also an opportunity to take new positions as new demands emerge due to changing consumer behaviours and preferences and as weaker players leave the market.

“Companies with healthy cash positions will restructure and accelerate investments into key pockets of businesses that will yield long-term profit and value,” he added.

Raj Kumar’s view can also be read at https://www.bernama.com/en/thoughts/news.php?id=1847026

THOUGHTS is a newly-introduced column on Bernama.com where experts in various fields can share their opinions and ideas on numerous topics and current issues.

-- BERNAMA