Based on my research as a Contributing Editor at CFO.com
Finance executives are on high alert in the aftermath of the failures of Silicon Valley Bank (SVB) and Signature Bank. Following the sudden collapse of the start-up focused lender SVB, it’s clear that without the appropriate contingency plans in place, the risk to companies is monumental.
CFOs need to make appropriate contingency plans to prepare for future events and ensure that their finance department can continue to operate in sudden, adverse conditions. Every finance department should evaluate risk, mitigate it as much as possible, and make appropriate plans, which include:
- Contingency planning: Advanced planning to prepare for future events
- Continuity of operations planning: Remain in business should a sudden adverse event happen
- Continuity of leadership: What you do when the owner dies or is incapacitated
Follow this step-by-step checklist to minimize banking exposure.