Management of Commercial Organization

Few weeks ago, people of Bangladesh were living peacefully, travelling freely, doing their jobs
perfectly; the economic growth projections were cheery and the financial market were tolerable –
as the world recovered from the global financial crisis of 2007-09. But the novel coronavirus or
Covid-19 has brought a dramatic slowdown in the overall life style and economy of the world
where Bangladesh became a victim too.

The coronavirus disease (COVID-19) is an infectious disease caused by a new strain of

coronavirus. This new virus and disease were unknown before the outbreak began in Wuhan,
China, in December 2019.

Although for most people COVID-19 causes only mild illness, it can make some people very ill.
More rarely, the disease can be fatal. Older people, and those with pre- existing medical
conditions (such as high blood pressure, heart problems or diabetes) appear to be more
vulnerable.

The total number of confirmed cases is increasing following geometric patterns in Bangladesh.
The pandemic has seriously affected educational systems, banking, FDI, ready-made garments,
remittances, Organizations response to COVID-19 has resulted in the most rapid transformation
of the workplace.

Working from home has become the new normal and gone from digitizing the relationship
between firm and customer to digitizing the relationship between employer and employee.

Managers have been catapulted forward, fast-tracking trends such as automation, digitalization,
and innovation. Companies are at a crossroads: those that capitalize on post-COVID
opportunities will find themselves in a good position to retain their talent and attract people when
the situation stabilizes. By contrast, those that fail to change will be left behind, exposing their
employees to increased risks of financial distress, facing layoffs and closures etc.

Finally, it is not possible to mitigate the effects of pandemic individually but the integrated effort
from the state authority as well as concern people of all sectors need to come forward. This
review would be helpful to undertake future management practices against the fearsome COVID-
19 in Bangladesh.

Business impact during corona virus in Bangladesh

Businesses must navigate the financial and operational challenges of coronavirus while rapidly
addressing the needs of their people, customers and suppliers.

Many organizations are already taking “no regret” actions to emerge from the pandemic stronger.
These manager are facing the crisis with a spirit of reinvention—accelerating digital
transformation, establishing variable cost structures, and implementing agile operations.
Building the resources to seize new opportunities

In the face of the COVID-19 crisis, manager have had to act quickly to optimize their company’s
resilience—rebalancing for risk and liquidity, while assessing opportunities for growth coming
out of the downturn. Immediate action is needed to address short-term liquidity challenges, but
also to solve for costs and profitability and generate funding to invest in new opportunities,
including M&A.

Building technology for the strength to succeed.

Even before COVID-19, many organizations faced considerable IT challenges. Now, COVID-19
is pushing companies to rapidly operate in new ways and IT is being tested as never before.

As businesses juggle a range of new systems priorities and challenges― business continuity
risks, sudden changes in volume, real-time decision-making, workforce productivity, security
risks―manager must act quickly to address immediate systems resilience issues and lay a
foundation for the future.

• 4+++++++++++++++++++- key areas for coronavirus & banking

• 1. Credit Management

• 2. Revenue Compression

• 3. Customer Service & Advice Provision

• 4. Operating Model Adjustments, Cost Control and Innovation

• Credit Management

The cashflow of many consumers and businesses will collapse as lack of demand flows through into
lower business revenues and employee layoffs. There are, however, steps banks can take to mitigate this,
to help their customers survive, and potentially to emerge with stronger customer relationships:

• Support government actions

• Prepare for losses

• Extend credit

• Digitize to manage the demand for refinancing

Customer Service and Advice Provision

A short-term impact of this pandemic will be rapid changes in customer servicing preferences.
While many bank branches will stay open as a vital service, customers are increasingly looking
to run their financial life through apps and online banking. How should banks react to this pivot?

• Educate and train customers

• Minimize physical infection risks

 • Personalize advice to consumers

• Support virtual SME relationship managers

• Accelerate digital sales and service

• 4. Operating Model Adjustments, Cost Control and Innovation

The cumulative impact of the three points above will lead to a misalignment of short-term
revenue and expenses in the banking sector. We expect a range of impact from a 50 – 100 percent
drop in PBT. As the demands of the next four to six months will be different from what was
envisaged six weeks ago, banks should respond with as much flexibility as possible:

• Carefully consider the tasks of the ‘war room’

• Review project expenditures

• Be flexible with vendors and suppliers

• Invest in things that will outlive the virus

• The future of banking after COVID-19

As banks grapple with the many challenges posed by the COVID-19 crisis it becomes clear that,
whatever the eventual outcome, they will learn many valuable lessons about their customers,
their own capabilities, and the market as a whole. These will serve them well in the years ahead.

We hope our deep dive into the implications of the crisis provides some nuggets of insight. As
your business partner, we stand ready to provide whatever support you may need.

• How to manage organizations near future

• Help businesses access financial support

Small and mid-sized businesses may need the most help to lower costs, ease debt obligations,
maintain working capital and stabilize supply chains. Banks can help by:

• Extending leniencies, such as moratoriums on funded facility repayment

• Offering customer-specific products, such as discounts, waivers and business interruption

insurance

 Providing digital loans

•  Strategizing on new business opportunities and value propositions

• Digitize commercial banking offerings and automate processes

The health crisis is compelling many businesses, and thus commercial banks too, to move more
of their banking interactions from "assisted" channels to digital offerings. Both can reap cost and
productivity benefits in the short and long term, if banks manage to:
 • Map changes to the customer journey to existing digital offerings, using what’s already in
place (even on the retail side of the bank) and shoring up any gaps

• Establish a technology steering team to take technology-enabling actions and integrate

with broader IT

• Partner with others to quickly get digital credit origination running at scale

• Proactively monitor portfolios to shield credit quality

While making access to credit simpler and adhering to governments’ credit mandates, banks can
look out for their business customers and themselves by keeping close tabs on the health of credit
portfolios. Key actions to take now:

• Segment and identify loans based on their future credit risk to better manage them

• Create a digital place for businesses to get quick answers and solutions

• Embed data and analytics tools and AI into credit portfolio management functions

• Coronavirus & commercial banking: emerge stronger

Surviving through and thriving after the health crisis will be a lengthy journey. We believe good
can—and will—come out of it for those taking right action, right now. Hopefully, this bit of
insight helps you to quickly and wisely think about and plan your bank’s immediate and next
steps—the swift support you provide to your small and mid-sized business customers can go a
long way to strengthening these relationships. We are here to help in whatever business capacity
you may need to emerge stronger.