Issues Business environment Creating opportunity in adversity - Ernst & Young - New Zealand

In 2009, Ernst & Young held more than 40,000 meetings with senior executives around the globe. We asked them how the downturn was affecting their business, then gathered those insights into Lessons from change. Learn which eight strategic actions companies should focus on now.

Amid signs of economic recovery, we suggest in The future of Finance (pdf, 248.8kb) that CFOs establish and implement a holistic framework that identifies weaknesses and potential improvements, and which helps enable Finance to be more effective, lower costs and help deliver more value to the bottom line.

Our survey of 50 well-known New Zealand companies in June 2009 reveals that in comparison to global counterparts, the impact of the recession was not as severe nor the surprise as great. Business has taken positive steps to secure survival and is now focussing on the market opportunities as the economic gloom starts to lift. However uncertainty still lingers. What else can business do to sustain the future? Read our report (pdf, 5.6mb) .

Governments around the world are fighting the first global recession we've experienced since World War II, and tax measures are playing a major part - 56%, according to recent OECD figures - in the range of stimulus packages being rolled out globally. Tax policy has gone global in a major way, and in this study from Ernst & Young, tax measures in 24 major jurisdictions are analysed, and a key set of common themes are apparent, resulting in both challenges and opportunities for the tax function. Read more in Worldwide fiscal stimulus - tax policy plays a major role.

Liquidity and cash flow have become more critical than ever in a company’s ability to drive its strategic agenda, yet our recent survey found that many companies have not fully considered the impact that cash tax management strategies can have on their financial position. Wherever a company sits on the financial spectrum — from “cash burn” to “cash earn,” tax provides a variety of strategies to preserve, acquire, or maximise cash to support business goals. Read more in this latest report (pdf, 248kb) from Ernst & Young.

What strategic challenges are likely to affect your company in 2009 and beyond? Ten of the most critical risks, including regulatory and compliance, financial shocks, and aging consumers and workforce, are analysed in The 2009 Ernst & Young business risk report: the top 10 risks for global business (pdf, 1.9mb).

This issue of BoardMatters Quarterly, "Managing risk in the current climate" (pdf, 610kb), is dedicated to helping audit committees identify, prepare for and protect against the key risks their companies may face during these strenuous times.

The world is changing more rapidly than ever. Globalization continues its march. Gaps in power between developed and emerging countries continue to narrow, driven in part by the politics and economics of energy. The financial landscape is in turmoil, driving increased regulation. "Global megatrends 2009” (pdf, 886Kb) presents an Ernst & Young perspective on the most important themes that are likely to play out in the medium to long term: they are what we need to be thinking about to prepare ourselves for the future.