What should companies look for when they seek guidance?
Companies should seek guidance that helps them tackle a few very strategic themes: including cash conservation and generation, risk mitigation, revisiting debt arrangements and distressed buy-side and sell-side opportunities. Effective guidance should reduce downside or increase the upside. What questions should companies ask to better assess their exposure to uncertainty or risk? The best way to truly understand your exposure is to do a scan of all of the components of your business to determine how those might be affected by the current downturn. This macro industry analysis can help you gain insight into your customers, suppliers, competitors, government and regulators. Begin by asking questions about who your major customers are, how they may be impacted and whether they are optimally concentrated. Look more closely at your critical suppliers, your alternatives to credit, how the changing regulatory environment will affect you, and what your competitors are up to. Are things really
