Current and Future Crises that Companies Sometimes shall Face

The list of crises threatening businesses is growing every day. As it turned out, among the future crises that business leaders must prepare their companies and organizations to deal with, the economic impact caused by climate change was included. Moreover, experts call on leaders to take immediate action.

However, in addition to climate change, the number of challenges facing companies this year is quite large. The following are the crises that organizations often face or will have to deal with in the future.

Given the current political situation, among the most serious crises that businesses may face is Russia’s use of food and energy as “weapons” for its own purposes. And this, according to Crisis24’s senior vice president of global intelligence, will ultimately be reflected in the negative global impact of oil, as well as many industrial and consumer products.

The president of Alta Technologies predicted a while ago that the supply chain would become the cause of disruption to a large part of the business. Cory Donovan believes that as supply channels weaken, companies will face more challenges: “Brands that over-index their purchases will be in the worst position as they will suffer from write-offs of liquidated inventory and unsold products.”

Another important issue the business will have to actively fight not only in 2022, is related to cyber security. The main thing is that most businesses are still unprepared for cyber attacks.

As a result of inflation, prices increase rapidly, and the cost of renting commercial space is no exception in this case. Compared to January 2021, inflation for natural gas, products, and utilities (including commercial space rental) has increased by more than 200%. It is difficult for businesses to interest consumers with high prices, and the rising rate of inflation affects both consumers and them negatively.

Taxes are one of the biggest problems in business. It is doubly difficult for businesses to withstand increased taxes and at the same time protect themselves from audits. Audits, along with confiscation of computers and documents, can easily shut down many small and medium-sized businesses.

A turbulent economy, the long-term effects of the pandemic, and rising costs for businesses are among the financial crises of 2022. Dealing with just one of them is a big challenge for CFOs. With an uncertain future, companies need to move beyond traditional vision and emphasize trust and purpose in their strategies. It’s time to transform finance functions into a “strategic and value-driven force,” both now and in the future.

Discrimination tactics that are associated with prejudice within an organization can actually be detrimental to an organization because it, in turn, affects employee productivity and overall satisfaction. Discriminatory behavior of managers during hybrid and remote work is noticeable, so the organization should develop appropriate mechanisms to combat such attitudes.