Dr. Oliver, Nanticoke Global Strategies LLC‘s Principal and lead Technical Authority, is again quoted in another Forbes article: 𝐇𝐨𝐰 𝐓𝐨 𝐏𝐫𝐞𝐩𝐚𝐫𝐞 𝐂𝐫𝐢𝐬𝐢𝐬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐏𝐥𝐚𝐧𝐬 𝐅𝐨𝐫 𝐃𝐨𝐰𝐧𝐭𝐮𝐫𝐧𝐬 𝐈𝐧 𝐓𝐡𝐞 𝐄𝐜𝐨𝐧𝐨𝐦𝐲.

It’s time for business leaders to consider preparing crisis management plans for a corporate emergency that few had expected: the growing economic uncertainty caused by the actions, decisions, and shifting policies of President Donald Trump.

Trump’s headline-making moves—and some backtracking—has caused the stock market to drop, consumer confidence to fall, and threatens to escalate the cost of materials, supplies, and products.

These are all early indications that corporate executives should take steps to protect their companies from the impact of a possible economic downturn and consider ways to make their businesses crisis resilient. “Truly resilient organizations bounce back better and even thrive,” according to a report by McKinsey & Company.

A Good First Step

A good first step towards resiliency is to immediately prepare an economic resiliency crisis management plan to help guide their efforts.

“Diversified revenues, operating adaptability, financial shock absorbers, and instant risk determination are all critical elements in a solid crisis management plan,” Vipul Jain, founder and CEO of PR firm Red Tulip Media, advised via email.

All plans should include four basic provisions, according to Joy Francis, a financial turnaround specialist and CEO of Joyous Suite who has four decades of experience navigating financial crises. The provisions include:

• Optimizing cash flows for 30-, 60- and 90-day periods of time
• Diversification of supply chains requirements based on the vulnerability of their industries
• Determining how technology can be used for the remote operations of business activities
• Strategies for retaining customers that prioritized according to their impact on revenue strategies

Some of the major questions that a plan should address are how the crisis would impact the business, what steps should be taken now to mitigate the damage, who should be notified about the steps that are taken, and how long it might take to bounce back from the crisis.

Size Matters

Companies should account for their size in crisis management resiliency plans.

“Larger companies often develop and maintain corporate economic resiliency crisis management plans with in-house staff with support from consultants. Smaller companies can’t afford to hire in-house staff or consultants, yet they are often the most vulnerable to business interruption causes by a crisis and often the least capable of recovering,” Clifford Oliver, a former FEMA assistant administrator and now the principal at Nanticoke Global Strategies, observed in an email interview.

Mid-Size Companies

“Resilience for mid-sized businesses involves multi-channel revenue models, renegotiation of vendor contracts, and diversification of the supply chain. This adaptability is illustrated by Patagonia’s move to direct-to-consumer e-commerce sales during the pandemic. Lean operations, emergency lines of credit, and alternative capital need to be prioritized by small, often cash-starved organizations,” according to Jain.

Small Businesses

“In a JPMorgan Chase study, 50% of small businesses have only 15 days’ worth of cash on hand, so financial contingency planning is critical,” Jain noted.

Small businesses should “Focus on cash reserves (minimum 6-month operating expenses) and simplified decision-making protocols; mid-size businesses [should]
Develop departmental mini-crisis teams with clear authority parameters; while large organizations [should] create tiered response systems with regional autonomy within global frameworks,” Francis of Joyous Suite recommended.

Prioritize Flexibility

“My main advice would be for small businesses like ours [is] to have a strong crisis management plan that prioritizes flexibility, diversified revenue streams, and supplier redundancy. Covid in particular really helped me understand the importance of a cash buffer and leveraging credit strategically,” Brian Kroeker, president of Little Rock Printing, advised via email.

There’s one think that all businesses should have, no matter how large or small they are.

“Regardless of company size, it’s essential to include clear communication protocols, cross-functional crisis teams, and adaptable operational workflows to maintain business continuity,” he concluded.

Industry-Specific Tactics

“Industry-specific tactics count. Retail and hospitality businesses, for example, need customer retention tactics such as Starbucks’ rewards program. Manufacturers must transition from just-in-time to just-in-case inventories to prevent supply chain disruptions. To protect tech firms from financial and reputational damage, intellectual property protection and cybersecurity need to be enhanced,” Jain of Red Tulip Media counseled.

Scenarios

“Robust scenario analysis remains the cornerstone of the effective crisis management planning. Incorporating detailed, granular scenarios combined with senior management insights—gained through structured war room exercises—helps ensure preparedness and agility. Companies must regularly refresh these scenarios, leveraging current market intelligence and leadership judgment to stay ahead of emerging risks,” Stas Melnikov, head of quantitative research and risk data solutions for SAS, a data and AI company.

Updating Crisis Resiliency Plans

“I would say that the frequency of updates largely depends on the economic climate and industry volatility, but we typically reassess quarterly. Market conditions can shift quickly, so waiting until a crisis hits to adjust the plan is a mistake. Being proactive is key and will better position you when weathering downturns,” Kroeker observed.

Like any crisis management plan, the ones to ensure economic resilience should be reviewed and updated frequently.

A review of financial metrics should be conducted quarterly, with a b-annual simulation that tests crisis response systems. The plan should be reviewed and revised every year in conjunction with boards of directors and senior leadership. Then, depending on changes in any significant economic indicators, the plan should be updated immediately, according to Francis of Joyous Suite.

Other Crisis Triggers

Economy-related policies, decisions and events are not the only hazards that can trigger a devastating crisis for companies. Natural disasters such as floods, fires, and snow storms should also be taken into account by business leaders when preparing resiliency plans.

“Corporate economic resiliency crisis management plans need to do address all-hazards. It is important to understand that hazards and their accompanying risks are not stagnant. Changes to natural hazards tend to occur more slowly over time, whereas manmade hazards, such as terrorism and cyber threats are evolving and morphing at an ever-increasing pace as bad actors respond to mitigation strategies put in place that address vulnerabilities,”Oliver of Nanticoke Global Strategies pointed out.

There is an important incentive for having these management resiliency plans in place.

“Businesses with disaster response plans are usually operational sooner than businesses without plans. Almost half (43%) of small businesses affected by a disaster never reopen after the disaster, and an additional 29% go out of business within two years of the disaster, according to FEMA,” he noted.

‘A Strategic Initiative’

“Crisis planning has to be seen as a strategic initiative, which is revised on a quarterly cycle, and aligned with shifts in the market. Companies that create resilience in their core not only survive but gain market share while competitors falter,” Jain of Red Tulip Media counseled.

The ability of companies to bounce back quickly during or after an economic crisis requires as much planning and consideration as any other crisis that can threaten the profitability—or existence—of businesses.

The longer that corporate executives delay in preparing and implementing economic resiliency crisis management plans, the longer it will take for them to respond—and recover—from economic downturns and other crisis triggers.