It’s refreshing to know there are at least some companies that still see prudent financial & risk management practices (i.e. saving for rainy day) as relevant to their ability to operate as a going concern. Sounds almost quaint in this era of #Fed bailouts, #QE, and rampant #moralhazard.
WSJ: Some Companies Began Preparing for a Downturn Before the Pandemic
“Finance chiefs were preparing for a downturn [GOOD IDEA!] long before the coronavirus roiled the global economy; however, few expected it to be as swift or severe. [OK, FAIR ENOUGH] “
“After 11 years, we were expecting a slowdown or a recession,” [PROBABLY SMART?] said Max Brodén, chief financial officer of Aflac Inc., an insurance company.“
More executives were being proactive in planning for a recession; [ALWAYS A GOOD IDEA] however, they weren’t as aggressive in tackling “the extreme downside that we are seeing now,” [OK, FAIR ENOUGH]
“We had seen an expansion that had gone on for more than 10 years,” said Linda Huber, the company’s chief financial officer. “Market conditions don’t go on forever.” [NOPE, THEY USUALLY DON’T]
“When the sun is shining, you plan and take advantage of that,” Ms. Huber said. [GOOD ADVICE!]