Interest Rate Uncertainty: 4 Questions to Ensure Business Continuity
As recent forecasts released by the Federal Reserve suggest significant changes in upcoming months, companies must utilize tools necessary to plan for any outcome and quickly adapt. Whether you are a part of a small business or a large company with a steady income, asking these four questions before hitting financial adversity could determine if your organization maintains buoyancy or becomes leaden.
1. Where will our problem areas be?
As interest rates fluctuate, both consumption and investment will see different outcomes. For this reason, assessing the potential effect of a bear market will be key to deciding what kinds of actions need to be taken and whether it is time to make significant changes to capture upside or mitigate downside risk.
2. Do we have a strong Business Continuity Plan?
Having a Business Continuity Plan (BCP) will help your company prepare for the unknown by protecting your margins. Simple steps like determining how the company will react in a variety of financial situations having tools that will improve communication and keeping reliable databases, will help your company stay afloat and reduce the severity of the impact.
3. Do we have the right Corporate Performance Management (CPM) tools?
Changing interest rates can directly impact the capability to raise the funds needed to finance operations, payroll and purchases. Because of this, it is vital that you make the best possible use of performance management tools that will enable intuitive planning, forecasting, reporting and dashboards.
Adaptive Insights is a worldwide leader in corporate performance management, as it provides software solutions that deliver accurate predictions for the future of your business.
4. Do we need an Enterprise Resource Planning (ERP) solution?
When it comes to financial uncertainty, going over your budget is no longer pardonable. For this reason, finding a solution that allows you to evaluate different business scenarios while taking your targets into consideration, will not only improve business performance, but it will make sure that your current operations are on target.
Netsuite’s financial planning solution, for example, helps companies meet their budgeting and ongoing forecasting needs while also considering an ever-changing business environment.
