COVID-19: Why organisations face increasing operational challenges

.As ACCA urges governments to review economic rescue packages

Findings have shown that irrespective of size, sector or country, the economic and social impact of the Coronavirus pandemic has expanded, and challenges are growing for businesses across the world.

For instance, organisations in Nigeria are focusing on the long-term return to strategic opportunities for the future beyond 6 months, as they look ahead of post-covid-19 pandemic.

A global accountancy profession body, Association of Chartered Certified Accountant (ACCA) in its latest Covid-19 global survey, tagged ‘The Road to Recovery’, explained that three months on the picture (January – March) crystalised many key issues that need to be addressed by policymakers and governments.

ACCA, therefore, called on governments worldwide to review economic rescue packages and enable a return to sustainable growth.

The accounting professional body explained that the overall picture for Nigeria is one of a slow return to normal.

Commenting, Head of ACCA Nigeria, Thomas Isibor said, “Our data for June reveals continued cash flow challenges, with half of the respondents in Nigeria saying this is a problem. Since the March research, the new data reveals greater concerns over financing and debt issues, and given the global economic climate, it means these will be difficult matters to resolve.

“The key issue at the centre of these issues is a collapse in customer demand for many organisations, with close to half of respondents citing purchases as completely stopped or reduced here in Nigeria. It’s a domino effect, with both product launches and investment plans being deferred, further compounded by supply chain challenges and issues with customer order fulfilment.”

ACCA, however, noted that 87 per cent of organisations in Nigeria have now adopted flexible working from home strategies, with 77 per cent adopting staff rotas to accommodate social distancing requirements.

“About 63 per cent are reviewing organisation processes to identify efficiencies, while 46 per cent evaluating their social responsibility to the wider communities affected by the outbreak.”

The accountant global body in its poll also asked respondents about the effectiveness of recent government schemes, with only 5per cent respondents from Nigeria rating the interventions are undertaken by the government as effective. Although, challenges remain across many other countries.

“The pandemic has had a profound effect that will resonate well beyond 2020. But it is good to see respondents planning ahead, thinking of the long term while managing the present, and also thinking of the bigger picture about their responsibilities to the wider community that’s also been impacted by Covid-19”, Isibor said.

Similarly, the report author and Head of Business Management at ACCA, Jamie Lyon, explained, “Through our “roadmap to recovery”, we’re recommending that organisations follow the “threeAs” – Act and respond sustainably to the immediate crisis in the short term; Analyse the different information sources to start to build the path to recovery in the medium term and Anticipate how strategies need to evolve over the longer term.”