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Covid-19: building resilience and preparing for recovery

Posted: 05 May, 2020

For the majority of businesses, the initial reaction to coronavirus was about managing the shock, even for those with the most robust crisis response plans. While some firms remain in survival mode, many have been busy shoring up their ability to absorb the ongoing effects of the initial shock and starting to lay the foundations for recovery.

There has been much debate about whether the recovery will be V shaped (a short sharp dip followed by equally sharp bounce back) or a more extended dip – a U shape. Some sectors of the market will bounce back more quickly than others so a fallen over Y is a more useful visual. Another distinct possibility is a W, with an initial bounce-back as measures are eased followed by a slump and a more gradual returning to normal. Or possibly lots of W's if we have future increases in cases that require partial restrictions to be re-imposed.

In reality, the shape of the recovery for individual businesses (U, V, Y, W or variations on that) will depend on myriad micro and macro factors. This will include the pre-coronavirus health of the business and the shape of their marketplace post-pandemic and into the recovery phase.

By Nathan Peacey 

To read in full click here 

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