Crisis management

Helping you get clarity, control and confidence during and post crisis

Your expert for questions

Claudia Nestler
Crisis management, PwC Germany
Tel.: +49 175 2980 952
Email

COVID-19 is affecting every organisation, both in Germany and around the world

The COVID-19 pandemic is affecting all parts of each organisation and creating an unprecedented situation for the community, politics and the economy. Business leaders need to rise to the occasion and act decisively, without being able to draw on past experience. The way business leaders handle the crisis today determines how well organisations will be able to recover once the crisis is over and how they emerge from the crisis in the future. Strong crisis management provides organisations and their leadership the opportunity to focus on the immediate needs while being able to make strategic decisions.

What’s important during the critical phase of crisis: reliable analyses and effective measures

The first priority when facing a crisis should be the establishment of a central crisis task force that involves the critical functional departments. It is important to establish an effective governance structure, clear roles and responsibilities, and access to the relevant data on critical processes. The next step should be identifying immediate measures to protect employees, maintain operations, and secure liquidity. In addition, you should review governmental support programmes to get an overview of what support your organisation might be eligible for.  

How you can stabilise your organisation: develop scenarios and gain control over the situation

Transitioning from crisis mode to ongoing stabilisation of your organisation requires a consistent central task force function. Actively monitor further developments and continue scenario planning for your critical business units and initiate corrective measures. Ensure your business continuity without neglecting compliance with laws and regulations, and stay informed about possible changes or new government regulations. During challenging economic times business can be particularly vulnerable, so ensure you protect your organisation from possible criminal activities, especially in the cyber realm.

Why you should focus on strategy now: every crisis offers opportunities

Leverage the knowledge you have gained from your experience with COVID-19 to take steps towards improving the overall crisis resilience of your organisation. The goal is to ensure that your organisation is more prepared to respond when the next crisis arrives, and to emerge stronger.

Additional articles on crisis management

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Getting through COVID-19 in three waves of response

Mobilise, stabilise and strategise your business. Together we can overcome this difficult situation. We provide tailored services and support to help you navigate your organisation safely through the COVID-19 pandemic. What you will need: an understanding of short-term priorities and a long-term vision.

Mobilise

1. Public aid programmes

The federal government and the federal states acted quickly to pass laws designed to mitigate the consequences of the COVID-19 crisis and to stabilise the economy. In addition, a number of regulatory and monetary policy measures have been introduced. It’s not always easy for organisations to keep track of all these new rules and regulations - nor is it easy to identify which laws are relevant for their business and how regulations can be applied properly.

Our experts in the areas of financing and state guarantees are happy to help you with any questions you may have about public aid programmes.

Contact

Bernd Papenstein
Tel.: +49 160 97244680
Email

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2. Financial stabilisation & restructuring

Depending on the situation, it may be necessary to provide an assessment of the financial resources available within a few days. Organisations need to act quickly and decisively, using incoming and outgoing payments as the basis for solid liquidity management. Further, they need to identify any additional sources of liquidity.

To provide a sound basis for decision-making, organisations need to develop planning models that forecast liquidity and drive business planning, while making sure that these models are robust enough to withstand different scenarios.

We can help support the implementation of effective short-term measures for cost reduction and working capital optimisation. We can also assist with raising debt, bridge financing and refinancing negotiations.

In addition, organisations should also quickly identify their most important stakeholders. We help organisations ensure professional interactions with stakeholders -- often a challenge in a crisis scenario, especially when there are conflicting interests and particularly demanding information needs.

Contact

Thomas Steinberger
Tel.: +49 89 5790-6443
Email
 

Eckhard Späth
Tel.: +49 89 5790-6415
Email

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3. Implications for transactions

Turn crisis into opportunities: the current market environment presents organisations with a variety of challenges. No matter whether you are acquiring or divesting, spinning off or integrating, restructuring or financing: we are happy to support all aspects of each transaction and can provide integrated solutions to meet all your needs. We always take a holistic view of your entire organisation, so we can identify the opportunities and risks of planned transactions in the market.

Our motto is: Your Deal is our Deal. Even in turbulent times, we help you successfully master complex transactions.

Contact

Erik Hummitzsch
Tel.: +49 89 5790-5185
Email
 

Steve Roberts
Tel.: +49 69 9585-1950
Email

Hansjoachim Köhler
Tel.: +49 69 9585-5039
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4. Implications for corporate governance

The current situation brings new challenges for corporate governance. In particular, the work of the Supervisory Board and the organisation of the Annual General Meeting require pragmatic and at the same time legally sound solutions. We would be pleased to support you on corporate governance related challenges and issues.

Contact

Henning Hönsch
Tel.: +49 211 981-2720
Email
 

Martin Kaspar
Tel.: +49 69 9585-2969
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5. Strategic crisis scenario planning

In order to master the uncertain times of the crisis, it is helpful to look at macroeconomic developments and the effects on one's own industry and organisation. We have developed COVID-19 scenarios and simulated their effects on organisations and the economy. This allows us to present macro views of selected industrial nations for the years 2020 to 2022 and to develop industry-specific evaluations. We would be pleased to support you in applying these macroeconomic and industry views to your organisation.

Contact

Philipp Wackerbeck
Tel.: +49 89 54525-659
Email
 

Roland Werner
Tel.: +49 69 9585-3158
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6. Building and rent moratorium

Legal provisions for the suspension of the special right of termination due to rent arrears have already been issued under the COVID-19 Mitigation Act 2020. Individual market players have already announced and introduced rent deferrals. However, there is currently no legal requirement to adjust rental agreements.

Our real estate experts can support you in actively managing your commercial buildings and rental properties during the crisis.

Contact

Susanne Eickermann-Riepe
Tel.: +49 69 9585-5909
Email
 

Thomas Veith
Tel.: +49 69 9585-5905
Email

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Stabilise

1. Transition Office

After the initial and critical crisis response, it is important to continue with the central task force (here as “Transition Office”) to coordinate and monitor all of the measures required to stabilise and adapt the future direction of your organisation. This includes but is not limited to bringing the workforce back to work, restarting your supply chain, re-engaging customers and stabilising liquidity. We will support you in planning and monitoring your operational restart, in transforming processes to fit the new environment and in predicting and preparing for the next wave of challenges.

We leverage digital tools and solutions for data driven and lean decision making processes. We also work with you to develop scenarios for your critical processes which are based on the sound knowledge of our economic, industrial and epidemiological experts.

Contact

Claudia Nestler
Tel.: +49 175 2980 952
Email

Qian He
Tel.: +49 1512 2898663
Email

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2. Business continuity management (BCM)

Politicians and organisations alike found themselves not fully prepared for the crisis scenario caused by COVID-19. In the future, your organisation should develop an appropriate Business Continuity Management (BCM) plan. This will help you secure resources and maintain functionality of critical business processes, as well as recover within a defined restart time, already during crisis times.

Start planning the restart now and prepare your organisation better for future crisis scenarios. This includes not only restoring processes and workflows to normal operation, but also optimising business continuity for the future. We will support you in your BCM or in business impact analyses that assess your restart parameters so you can restore normal operations. We will also work with you to develop effective contingency plans for the future.

Contact

Franziska Hain
Tel.: +49 221 2084-273
Email
 

Perry Podolsky
Tel.: +49 221 2084-265
Email

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3. Insolvency: consulting through execution

As a result of COVID-19 and the measures introduced by the German government to prevent its spread, many companies have seen their planned revenues and expected payments collapse in a way that is completely unprecedented. Many companies now face a situation that is becoming increasingly critical. Although in some cases companies are not currently required to file for insolvency under the new regulations as they normally would be, most of the companies that were already in distress prior to the crisis are not able to access state aid.

We provide the advice and support you will need in this situation, from the application for state aid, the assessment of whether or not you are required to file for insolvency, through to the control of liquidity management and/or the preparation of insolvency proceedings. We can also support you throughout the insolvency proceedings.

Contact

Frank Girotto
Tel.: +49 89 5790-6456
Email
 

Andre Bäcker
Tel.: +49 69 9585-5264
Email

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4. Cyber Security

The shift from workplaces into home offices is accompanied by many challenges and may trigger security risks. For example, organisational infrastructures are usually not designed to connect all employees to the organisation’s network. Moreover, ad-hoc structures, unlike the established ones, are often not well tested for potential security gaps. It is important not to underestimate the additional risks with regard to data security and data protection this may trigger. We support you in setting up secure solutions and in addressing data security and data protection issues.

Contact

Holger Herbert
Tel.: +49 69 9585-1528
E-Mail

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5. Risk classification & compliance with guidelines

Regulators expect companies to comply even in times of crisis. Regulatory changes can create opportunities that should be used for your business. Our risk classification and functional analyses in the context of COVID-19 can help you with development of your risk inventory. For example, this will help you identify the effects on your internal control system and initiate appropriate measures.

Contact

Daniela Hanauer
Tel.: +49 89 5790-5628
Email
 

Kathrin Kersten
Tel.: +49 69 9585-1201
Email

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Strategise

1. Crisis resilience

Every crisis also offers opportunities to emerge stronger. Leverage the insights gained from your experience with COVID-19 and take actions to improve your organisation's resilience with respect to future crises. With strategic and operational resilience analyses, you can align your organisation's management systems and operational business processes to maintain business operations even during the crisis. This includes agility measures, strategic stress tests, the integration of management tools and the implementation of a cultural change.

Contact

Robert Paffen
Tel.: +49 211 981-4330
Email
 

Claudia Nestler
Tel.: +49 175 2980 952
Email

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Claudia Nestler

Claudia Nestler

Crisis Management, PwC Germany

Tel: +49 175 2980 952

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