Evaluate your client company’s contingency plan
After reading the response from The Bank of New Hampshire it has
become very evident that they have a strong plan that will help them
stay protected in the event that there could be a major downturn in the
future. They have stated that they have sources of emergency liquidity
that will be able to keep them viable during a severe downturn, as well
as taking precautions and performing stress test on their loan
portfolios and balance sheets so that they have a strong idea on how
they will perform during different economic time periods. The statement
made from the company does follow consistent with what we had learned
with-in chapter seven. There is nothing to add to what they already have
with their plan as they have multiple tests and liquidity to keep
themselves secure with downturns in the future. However, one thing that
I do think would benefit them even more is to have tests to only
increase their data on whether they have the right materials and
resources to keep them afloat. The Bank of New Hampshire definitely has
a stronger grasp when it comes to a contingency plan overall due to the
stress tests on their loan portfolios and balance sheets.
Business response to the
questionnaire
Graponne
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
Our contingency plan include:
- Tighter control of our inventory levels
- Managing our cash. Making sure we have enough liquid reserves to get
us through the downturn
- Limiting discretionary expenses. Including delaying intensive
capital type projects.
- Keeping our team members fully engaged
- Making sure we have available credit (to finance cars that are not
selling as well as lines to draw down for working capital).
|
Bank of New Hampshire
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
As previously mentioned, we build loan loss reserves and carefully
monitor for signs of economic stress that may impact our business. We
have sources of emergency liquidity available, and other similar tools
to ensure the viability of the bank through a very severe downturn.
Furthermore, we stress test our loan portfolios and entire balance sheet
to determine how the bank would perform in various economic scenarios.
This allows us to determine is additional reserves, liquidity, etc. are
needed. |
Comptus
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
We do not have a contingency plan for an extended recession. |