dictation of understanding the COVID-19.
Following the Covid-19 pandemic, the notion of companies always planning to have a recast budget severally in a financial year to effect planning has become a reality. Most companies have now recast their budgets and even laid-off employees. The unexpected has necessitated the understanding of enterprise risk management dictation of understanding the COVID-19.
All these financial measures have been implemented to curb the financial crisis that has come as a result of the closure of business and loss of taxes. In response to the sudden and great decline in revenue and the clear uncertainty in the coming future, employers have had to cut salaries and lay off. Temporary expenses have had to be reduced, and the yet to be affected are most likely to go to effect very soon. The pandemic has multiplied the already existing challenges faced by organizations. This is to say that business has had issues like struggling to revive their reserves and free up maximum capital with a view to investing in strategic areas under focus.
The effects of COVID-19 are predicted to continue around the globe and even eat into 2021. The focus should entirely be on budget cuts and directing these cuts towards keeping organizations remain afloat. The purpose of a recast budget at these times is to provide a living budget to deal with uncertain times like the ones facing all economies in the world. Every happening around the business has to be updated in the interest of the organization. One way of updating budgets is through salary cuts, and reduction of employee expenditure is one of the methods that have been used during the COVID-19 pandemic.