In adverse circumstances the contingency plan include procedures for making up cash flow shortfalls. The company has available various sources of such funds, including previously unused lines of credit. The company might choose - or be required - to use one or more of these sources depending on the rigorousness of the liquidity problems. The plan should clearly state how much funds the company has available from these sources and in what scenarios it could use them.
The company should not rely completely on back-up lines and need to understand the various conditions, such as reporting periods, that may hamper the company 's ability to quickly access these lines. In reality, the IC company should have contingency plans for the times when their …show more content…
CRISIS i] Global crisis management by managing the actions of the regulatory / supervisory bodies of any subsector of the financial services sector; ii] use an interinstitutional approach on issues related to crisis management and resolution through the creation of a single communication channel. In case of any crisis situation, it will also prepare the official declarations in advance to avoid misinformation; iii) Establish credibility and restore confidence in the banking sector; iv) Perform simulated exercises to prepare staff for any crisis; And v] Take such other measures as may be necessary to achieve its …show more content…
The CMU is a temporary agency for a single purpose and is designed to deal with any general crisis in an emergency. However, because of their contingent nature and the need to act quickly, their composition and responsibilities need to be identified early. The CMU should have full control over issues such as the crisis and have the authority to make appropriate decisions. In order for the CMU to deal effectively with crises, it must have the necessary power and authority
CMU 's success in dealing with any crisis depends on the existence of an adequate mechanism to determine the actual financial situation of the company. Taking into consideration a reliable database on the financial situation of the company that is regularly updated. Accounting instructions and values should also correctly reflect the assets and liabilities of banks, as well as operating results. The efficiency of management ultimately must be
The company should not rely completely on back-up lines and need to understand the various conditions, such as reporting periods, that may hamper the company 's ability to quickly access these lines. In reality, the IC company should have contingency plans for the times when their …show more content…
CRISIS i] Global crisis management by managing the actions of the regulatory / supervisory bodies of any subsector of the financial services sector; ii] use an interinstitutional approach on issues related to crisis management and resolution through the creation of a single communication channel. In case of any crisis situation, it will also prepare the official declarations in advance to avoid misinformation; iii) Establish credibility and restore confidence in the banking sector; iv) Perform simulated exercises to prepare staff for any crisis; And v] Take such other measures as may be necessary to achieve its …show more content…
The CMU is a temporary agency for a single purpose and is designed to deal with any general crisis in an emergency. However, because of their contingent nature and the need to act quickly, their composition and responsibilities need to be identified early. The CMU should have full control over issues such as the crisis and have the authority to make appropriate decisions. In order for the CMU to deal effectively with crises, it must have the necessary power and authority
CMU 's success in dealing with any crisis depends on the existence of an adequate mechanism to determine the actual financial situation of the company. Taking into consideration a reliable database on the financial situation of the company that is regularly updated. Accounting instructions and values should also correctly reflect the assets and liabilities of banks, as well as operating results. The efficiency of management ultimately must be