FTI Consulting Resilience Barometer Finds Business Models Must Be Fundamentally Reevaluated in Light of COVID-19
Out of more than 2,000 large companies across G-20 nations surveyed, 90% are placing greater emphasis on planning for unknown risks, which means concentrating on business fundamentals such as staying operational and financially viable in the face of future crises. As a result, 78% of companies now use artificial intelligence and analytics to monitor for scenarios that impact risk and compliance.
The pandemic’s unexpected onset significantly impacted business resilience, with 60% of companies surveyed saying they are facing challenges servicing their debt requirements, and companies are seeing an average revenue decline of 10% and headcount decline of 12%.
“COVID-19 has shattered preconceptions about what a resilient company or economy looks like,” said Caroline Das-Monfrais, a Senior Managing Director and Global Resilience Lead at
More than three-quarters (78%) of companies surveyed believe they must fundamentally reevaluate their business models as a result of the pandemic. Doing so often involves making difficult decisions — a fact illustrated by 3 in 10 companies surveyed across G-20 nations requiring restructuring or refinancing due to COVID-19’s impacts.
Companies will need to reassess strategic actions like mergers and acquisitions as well as the integrity of supply chains, which three-quarters of respondents believe have been permanently disrupted.
“If companies do not change themselves, seismic shifts in the market will do it for them,” said
About the FTI Consulting Resilience Barometer™
The latest quarterly FTI Consulting Resilience Barometer™ report incorporates the views of 2,185 decision-makers in large companies across all
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Source: FTI Consulting, Inc.