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FINANCIAL STABILITY& COVID-19How CFOs cantackle immediate andlong-term priorities
The global impacts and uncertainty of COVID-19 is forcing businesses in all industries to be more vigilant than ever. The role of the CFO is also rapidly changing. Companies are shi�ing their attention to secure the present disruptions such as decreased resources, channeling aid to customers, and risk management. CFOs need to consider their immediate steps, near-term strategic and management plans, and plan for the “new normal.” By orchestrating analytics and digital, EXL can quickly scale to help businesses navigate the COVID-19 crisis. Our AI-enabled solutions allow you to focus on securing the present and accelerating the recovery.
THE ECONOMIC IMPACT OF COVID-19The role of the CFO is evolving from survival and cash preservation to boosting productivity through digitization. We’re seeing three areas of impact:
IMMEDIATESurvival & Cash
Preservation
NEAR TERMManage Risk &
Stabilize the Business
NEW NORMALBoost productivity
through digitization
The global impacts and uncertainty of COVID-19 is forcing businesses in all industries to be more vigilant than ever. The role of the CFO is also rapidly changing. Companies are shi�ing their attention to secure the present disruptions such as decreased resources, channeling aid to customers, and risk management. CFOs need to consider their immediate steps, near-term strategic and management plans, and plan for the “new normal.” By orchestrating analytics and digital, EXL can quickly scale to help businesses navigate the COVID-19 crisis. Our AI-enabled solutions allow you to focus on securing the present and accelerating the recovery.
THE ECONOMIC IMPACT OF COVID-19The role of the CFO is evolving from survival and cash preservation to boosting productivity through digitization. We’re seeing three areas of impact:
IMMEDIATESurvival & Cash
Preservation
NEAR TERMManage Risk &
Stabilize the Business
NEW NORMALBoost productivity
through digitization
7
The Current Situation
With some companies losing up to 75% of their revenues in a single quarter, cash isn’t just king – it’s now critical for survival.
FINANCIALIMPACTS FROM THE PANDEMIC
-2.4%Expected contraction of US GDP in 2020
64%Businesses expect negative impact on financial performance due to COVID-19
Looking Ahead
81%Companies expect their vendors or supplies will be disrupted
93%B2B companies expect their clients will see disruption
999
Top reasons for negative impact on financial performance:
75%
Prospective customers postponing buying decision
Canceled events/travel
Self-quarantine impacts
55%
40%
IMMEDIATE
Cash Preservation & Working Capital Optimization
Immediately execute on strategies for monitoring payables/ receivables defaults, spend control and centralization, and revenue impact assessment.
ACTIONS ENABLING THE CFO TO“LEAD FROM THE FRONT”
7
Building Financial Scenarios
Shi� from historical trend forecasts to “what if scenario” models encompassing multiple eventualities. Build models that takes into consideration macro trigger points and corresponding financial actions.
NEAR TERM
Proactive Risk Management
Identify and mitigate operational/financial risks arising due to talent disruption, internal controls failure, cyber threats, data breach, etc.
Building Supply Chain Resilience
Reassess supply chain components for criticality keeping another wave of pandemic in mind. Design & build “risk averse” future supply chains with alternative solutions in case of disruption.
999
“NEW NORMAL”
Accelerate Digitization
Boost employee e�iciency and collaboration through digitization. With remote working being the “new normal” – automate core finance processes to create a resilient finance organization.
Building Data Analytics Muscle
Finding “right-data” from your data streams “real-time” and building analytics over it ensures faster decision-making. Equipping business leaders with intuitive data visualization platforms would help them prepare for next challenge/opportunity.
The following priorities key for a CFO to consider during the immediate timeframe.
Tips for survival and cash preservation
Cash/Liquidity preservation
Recession scenario building
Prepare for a second wave of pandemic
IMMEDIATE ACTIONS AND FIRST STEPS
7
Generate cost e�iciencies
Adjusting revenue/EBITDA guidance for the year
Develop alternate sourcing options via current vendor analysis to strengthen supply chain
Our team of experts can help you with these priorities, and determine a strategy for your Near Term and “New Normal” management and operational improvements.
ECONOMIC IMPACT OF COVID-19
Reduce cost of finance
operations
Reduce cost of Internal Audit
& SOX by 30-50%
Rapid Blueprint to help reduce cost
of Finance Operations by
20-30%
Unlock capital through
monetization of captive back o�ice
operations
IMMEDIATE
999
NEAR TERM
Re-assess Risks and Create Financial
Resilience
Conduct virtual Supplier Risk Assessments
Identify additional Risks & Controls in
the Work-From-Home
operations
Balance sheet diagnostic to assess financial resilience
Lead with Digital and Analytics
Make finance “Native Digital” –
automatedclosings to
embedded analytics
“CFO cockpit”: real-time forecasts and collaborative decision making
Single, authoritative supply chain
dashboard and decision-making tool
“NEW NORMAL”
......................................................................................................................................................................
7
HOW EXL CAN HELP
8,000F&A Resources for
various accounting & reporting
requirements
1,200+Digital Bots
implemented in last 2 years
400+RPA and Consulting Specialist for Digital
and GRC enhancements
respectively
50+Clients with diverse
industry experiences across global o�ices
999
OUTCOMES OF OUR SOLUTIONS
Reduce cost of finance operations
Helped global commercial insurance carrier in improving their customer experience and driving E2E transformation, with a sustainable low-cost base across 7 global markets in their finance operations
Create Financial Resilience
Established dual shore global Audit CoE for one of world’s leading P&C Insurance companies with centralized audit team serving global auditors, to support IT and finance audits including infrastructure, SAP, SAP GRC, Networks, Vendor Audits and Cyber Security Assessments. Support in 10+countries.
Optimization of cash accounting and reconciliation process of leading US cable and broadcast services provider. Identified opportunities to reduce cost of onshore team through combination of standardization, best practices, platform optimization and leveraging digital levers such as robotics.
Assisted a top 3 global advertising and media holding company by transforming their finance operations to create Global CoE through process standardization, right shoring and improved customer experience
7
Lead with Analytics & Digital
Implemented E2E Procure to Pay (P2P) transformation using machine learning, RPA & advanced analytics for leading electrical cable and switch manufacturer in USA. Solution includes NLP based algorithm to classify emails to invoices, queries and one touch invoice processing
EXL helped a leading provider of business travel support services improve customer service e�iciency and CSAT by training and deploying Digital Intuitive Virtual Assistant (DIVA).
Reduction in transactional cost of cash accounting team
Enhanced customer experience and 20% improvement in
e�iciency
40%
30%+
32%
25%+
35%
Reduction in compliance cost over a 2 year period
Reduction in Financeoperations cost over a 3 year
period
Reduced cost of operations over a period of 2 years
999
THE EXL TEAM
CONTACT US
Maurizio Nicolelli,EVP & Chief Financial O�icer, EXL Maurizio joined EXL in January 2020 and brings tremendous financial, operational and leadership experience to his role as head of EXL’s finance function. A member of EXL’s Executive Committee, Maurizio is based at EXL’s corporate headquarters in New York. With 20+ years’ experience, Maurizio was a Senior Vice President, Principal, and CFO and is a CPA.
Jagmeet Singh, Head of Finance Transformation, EXLJagmeet is the Global Finance Transformation Lead at EXL, responsible for driving digital transformation for CFOs.He has 20+ years of experience in finance consulting, advanced automation and robotics, change management, process improvements, and program leadership across finance and risk functions.
Digital Intelligence is why companies in the world’s most complex industries, bring us their toughest challenges and their seemingly impossible goals. If you’re struggling to plan for your company’s “new normal” and transformation goals, contact us. We’ll help you make them real.
Jagmeet Singh Head of Finance Transformation, EXL [email protected]
THE EXL TEAM
CONTACT US
Maurizio Nicolelli,EVP & Chief Financial O�icer, EXL Maurizio joined EXL in January 2020 and brings tremendous financial, operational and leadership experience to his role as head of EXL’s finance function. A member of EXL’s Executive Committee, Maurizio is based at EXL’s corporate headquarters in New York. With 20+ years’ experience, Maurizio was a Senior Vice President, Principal, and CFO and is a CPA.
Jagmeet Singh, Head of Finance Transformation, EXLJagmeet is the Global Finance Transformation Lead at EXL, responsible for driving digital transformation for CFOs.He has 20+ years of experience in finance consulting, advanced automation and robotics, change management, process improvements, and program leadership across finance and risk functions.
Digital Intelligence is why companies in the world’s most complex industries, bring us their toughest challenges and their seemingly impossible goals. If you’re struggling to plan for your company’s “new normal” and transformation goals, contact us. We’ll help you make them real.
Jagmeet Singh Head of Finance Transformation, EXL [email protected]
7 7
Headquartered in New York, EXL has more than 32,600 professionals in locations throughout the United States, Europe, Asia, Latin America, and South Africa. We work as one committed team, with one overarching goal: to give our clients the power to transform —to move from playing catch-up to leading the pack. Because we’re not content to help our clients adapt to change. We embolden them to lead the change.
For more information, visit www.exlservice.com.
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