CFOs are crossing fingers and hoping a second wave of COVID-19 does not appear, says Gartner
- Reference: 1588081632
- News link: https://www.theregister.co.uk/2020/04/28/cfos_gartner/
- Source link:
The research group says 42 per cent of chief financial officers have no contingency plans for a second wave of [1]COVID-19 . That means it is not in the financial scenarios CFOs are modelling for the remainder of 2020.
After speaking to 99 finance leaders during April, Gartner also found that only 8 per cent of CFOs have a second wave factored into all their planning scenarios, and only 22 per cent have a second wave built into their "most likely" scenario.
However, CFOs did express a cautious approach as to when they will fully reopen their operations and bring employees back to their normal office routines, the research said.
Kerching! Intel PC chip shortage over just in time for everyone to buy computers for pandemic home working [2]READ MORE
"As CFOs are attempting to project revenue and profits for 2020, it's surprising that 42 per cent are not baking a second wave of COVID-19 into any of their scenarios," said Alexander Bant, practice vice president, research, for the Gartner Finance practice. "Our latest CFO data also reveals that most executive teams are still trying to decide what factors they should use to determine how and when to reopen their offices and facilities."
Despite the lack of contingency planning for a second wave of COVID-19, CFOs have become more concerned about the economic risks associated with the pandemic. They cited "macro-pandemic concerns" as their top worry at more than double the rate they did at the beginning of April, Gartner found. These concerns have grown while fears about revenue losses and employee management issues, such as productivity losses and meeting payroll, have declined.
"Many CFOs seem to be conscious of moving too quickly, with only 4 per cent of CFOs telling us that their organisations will require employees to immediately return to the office, even after receiving approval from state and local authorities to reopen their physical facilities," said Bant.
The CFOs' worries about the "big picture" implications of the COVID-19 crisis are equal to their cash-flow concerns as the most significant cited by the finance bods in April, with each category selected by 28 per cent of those surveyed.
The Guardian has [3]pointed out the precedents for a second wave of the virus. The 1918 influenza pandemic that killed more than 50 million people came in multiple waves, and the second wave was worse than the first. In the [4]2009 H1N1 influenza A outbreak, a first wave started in April and was followed by a second wave in the US in the autumn.
Maybe CFOs are placing their faith in the plans governments and health organisations are putting in place to avoid a second wave of COVID-19. If so, let us hope those plans don't fail. ®
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[1] https://www.theregister.co.uk/Tag/coronavirus
[2] https://www.theregister.co.uk/2020/04/23/intel_q1_2020/
[3] https://www.theguardian.com/world/2020/apr/20/will-there-be-second-wave-of-coronavirus-
[4] https://www.cdc.gov/flu/pandemic-resources/2009-h1n1-pandemic.html
[5] https://go.theregister.co.uk/tl/1936/-8553/legacy-modernization-finding-your-way-with-low-code?td=wptl1936
Gartner Goop
Leave it to Gartner to get people to pay them big bucks to state the obvious. Nice work if you can get it.
Of there will be no second wave.
It's not like the 1918 influenza came in multiple waves, or the black death or even "regular" flu.
Re: Of there will be no second wave.
This is the first time, however, that the medical profession and scientists have known what they are doing, and governments are taking them seriously.
One can only hope it's a bit like gas attacks in WW1 -the first time they were effective. The second time - better tactics, supply of working gas masks, Germans got clobbered.
Oh - supply of working gas masks. British government. Forget I said anything.
Re: Of there will be no second wave.
"This is the first time, however, that the medical profession and scientists have known what they are doing, and governments are taking them seriously."
Hello, welcome to Earth! We appear to be having some technical difficulties with Life - section B - Humanity right now! We suggest that you vacation elsewhere until the problem has been resolved or extincted! Thanks for your cooperation!
If the CFO's are worried
then I really hope that they can slow down the inevitable headlong rush to open up again ASAP.
There will be lots of PHB's out there chomping at the bit to open their businesses again so that they can re-assert their PHB rules on their unsuspeting staff.
All I can hope is that the ones that get it in the 2nd wave are the PHB's that are pressuring for their business to open tomorrow rather than waiting a bit longer.
Re: If the CFO's are worried
" I really hope that they can slow down the inevitable headlong rush to open up again ASAP."
NO NO NO NO NO NO!!! DAMMIT NO!! THIS SHUTDOWN CRAP HAS TO *STOP* *RIGHT* *FEELING* *NOW* *DAMMIT* !!!!
AND if YOU ****FEEL**** (the 'F' word) IT SHOULD *NOT* *OPEN* ***YESTERDAY*** THEN *YOU* *ARE* *A* *FLAMING* *SOCIALIST* *NUTBAG* !!!
Or do YOU WANT TO PAY ME FOR LOST WAGES??? My first invoice: $15,000
Now add the 30 MILLION UNEMPLOYED PEOPLE IN THE USA TO THAT LIST.
This virus is NO MORE THAN 50% WORSE THAN INFLUENZA as the death tolls *WILL* *REVEAL*. The original TWO WEEK shutdown *MIGHT* have kept hospitals from overflowing but NOW THAT WE HAVE SUPPLIES, EXTRA BEDS, AND HYDROXYCHLOROQUINE THERE IS NO DAMN NEED FOR ANY OF IT!!!
The ONLY WAY TO STOP A VIRUS is HERD IMMUNITY. Either you have a vaccine already (none exists) or YOU JUST LET IT RUN ITS COURSE AND PROTECT THE VULNERABLE!!!
SWEDEN GOT THIS RIGHT. NO MORE @#$@%%*()!&@_&* SHUTDOWNS!!!!!
*** E V A R *** !!!!!!!!!!!!!!!!!!!!!!!!!!!
CFO Planning
And, six months ago, how many CFO's had a major worldwide pandemic virus and government orders for everyone to stay at home in their plans?
None. Nada. Zilch. But we tackled it as it came and, so far, appear to have survived and ready to come out the other side. Next time/wave round we will be a bit better prepared. And have more loo rolls in stock.
Do these analysts really get paid to "research" and write this crap?
If there is one thing history teaches us it's that people don't learn from history.