Beyond COVID-19: Crisis response or road to recovery?
Crisis response or road to recovery?
COVID-19 has gone far beyond creating a temporary crisis. It is a game changer. The major hit suffered by the global economy due to the pandemic is leading to a serious global recession. In the near future, businesses are likely to continue experiencing commercial stress, increased competition, and greater financial pressures from all their business partners. ‘Money-maker’ business teams are likely to face enormous pressure on bottom lines, while business-enabling teams, like Legal and Compliance are expected to cut their budgets and reduce their operations to ‘essential only’ tasks. All that is coming while we continue facing substantial social and cultural shocks of remote working and social distancing. Times are certainly changing.
For obvious reasons, many organizations in the last few weeks have been led and operated in a crisis management mode. Priority has often been given to health and safety issues, continued operations, secured liquidity and sustainable supply. Legal and Compliance considerations have not always necessarily been given their usual weight around the crisis response table by some organizations, and businesses have had to embrace a higher level of risk-taking to accommodate for the special circumstances.
While organizations are re-adjusting to the emerging reality, it is important for their General Counsel to consider each of the following dimensions of the ongoing corporate compliance challenge and ensure that they are properly addressed in their organization’s continuation plan:
A prudent adjustment of the corporate risk and compliance management system seems important today more than ever before. Taking into account that the actions of corporations will be scrutinized in two or three years from now, it is the responsibility of General Counsel to ensure organizations do not solve a current problem by creating a new one in the future.
Businesses operating in the food and agribusiness sector need access to the latest changes and developments from a legal team who have extensive experience focusing on the whole of the food and agribusiness value chain, advising clients worldwide on all aspects of their operations, including domestic and foreign investment acquisitions, initial public offerings, joint ventures, scientific cooperation agreements, international trade, land matters and technology licensing.