Sep 13, 2018 By: yunews
Dr. Sharon Poczter, chair of the strategy and entrepreneurship department at , recently in Inc. titled 鈥淗ow Can You Protect Your Company From the Next Financial Crisis?鈥 on the occasion of the 10th anniversary of the 2008 meltdown.
She proposed a checklist of four items. The first is a self-education in how a financial crisis happens and what it exposes about a company鈥檚 weaknesses. 鈥淚t is important to understand which specific markets are currently vulnerable,鈥 said Dr. Poczter, 鈥渁nd the extent of your company鈥檚 exposure to this vulnerability in order to prepare for the future.鈥
Second, since she believes that the global corporate debt market is the market to watch in terms of future fragility, Dr. Poczter advises that 鈥渆ntrepreneurs should increase borrowing slowly, if taking on new debt at all is necessary.鈥 Third, companies should hedge their exposure to China by 鈥渕ap[ping] out options to diversify their relationship to the Chinese economy.鈥
Finally, 鈥渟pending time to analyze the vulnerabilities of your business to the economic environment is an important step in protecting your company from future downturns.鈥
