International business and management volume 21 corporate crisis and risk management modelling, strategies and SME application

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CORPORATE CRISIS AND RISK
MANAGEMENT

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INTERNATIONAL BUSINESS AND MANAGEMENT
Series Editor: Pervez N. Ghauri

Published:

Managing Networks in Transition Economics
Johanson

Development in Work and Organizational
Psychology
Jackson & Shams

Network Dynamics in International Marketing
Naude & Turnbull

Corporation and Institutional Transparency for
Economic Growth in Europe
Oxelheim

The Global Challenge for Multinational
Enterprises
Buckley & Ghauri

Managing Customer Relationships on the
Internet
Lindstrand, Johanson & Sharma

Business Network Learning
Hakansson & Johanson
Managing International Business Ventures in
China
Li

The Common Glue
Morosini
Non-Business Actors in a Business Network
Hadjikhani & Thilenius

Other titles of interest:
International Trade in the 21st Century
Fatemi

European Union and the Race for Foreign
Direct Investment in Europe
Oxelheim & Ghauri

Globalization, Trade and Foreign Direct
Investment
Dunning

Strategic Alliances in Eastern and Central
Europe
Hyder & Abraha

International Trade and the New Economic
Order
Moncarz

Intellectual Property and Doing Business in
China
Yang

Contemporary Issues in Commercial Policy
Kreinin

Co-operative Strategies and Alliances
Contractor & Lorange

Related journals — sample copies
available on request:

Relationships and Networks in International
Markets
Gemünden, Ritter & Walter

European Management Journal
International Business Review
International Journal of Research in
Marketing
Long Range Planning
Scandinavian Journal of Management

International Business Negotiations
Ghauri & Usunier
Critical Perspectives on Internationalisation
Havila, Forsgren & Håkansson

For full details of all IBM titles published
under the Elsevier imprint please go to:
/>
Managing Cultural Differences
Morosini

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INTERNATIONAL BUSINESS AND MANAGEMENT

VOLUME 21

CORPORATE CRISIS AND
RISK MANAGEMENT:
MODELLING, STRATEGIES
AND SME APPLICATION
BY

M. ABA-BULGU
Centre for Strategic Economic Studies,
Victoria University, Melbourne, Australia

SARDAR M. N. ISLAM
Centre for Strategic Economic Studies,
Victoria University, Melbourne, Australia

Series Editor: Pervez N. Ghauri

Amsterdam ● Boston ● Heidelberg ● London ● New York ● Oxford
Paris ● San Diego ● San Francisco ● Singapore ● Sydney ● Tokyo
iii

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Elsevier
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Preface, Abstract and Acknowledgement

The small- and medium-sized enterprises (SMEs) sector plays a significant economic and social role in Australia. A large number of these businesses suffer from
abrupt financial crises resulting from man-made or natural disasters such as fire,
flood, storm, etc, which affect all business sectors in the Australian economy.
Abrupt financial crises involve a partial or full destruction of productive assets, and
manifest themselves in the form of deterioration in cash flows, loss of market
share, loss of key personnel and, in extreme cases, a collapse of business organisation built over several years on the back of hard work and lifetime savings.
There are numerous theoretical and empirical models that have been applied
in relation to corporate crisis management with great emphasis on smouldering

crises, large companies and strategic crisis management principles and practices.
Application of these models and techniques to SMEs in Australia in the event of
abrupt financial crises is problematic and less effective due to the elements,
design and approach of these models.
The approach employed in this book is developed using a new theoretical
framework based on the elements of (i) financial management theories and policies such as risk management, financial engineering, portfolio theory, CAPM,
capital budgeting and optimal capital structure; (ii) accounting theories and practices including corporate financial distress and financial ratio analyses; and (iii)
corporate management theories and principles with major emphasis on corporate
governance, marketing management, business ethics and stakeholders analysis.
The book also applies systems approach to crisis management at two levels, i.e.
organisational level and financial crisis management level. A corporate planning
format involving targets, instruments and policies is adopted.
Qualitative and quantitative data were collected from 12 SMEs in Australia
that experienced business interruptions as a direct result of damage to their physical assets, in order to identify the key activities performed during this period and
to establish the best financial crisis management processes to be followed. The
case studies and analyses of the data based on the new approach developed in this
research show that these businesses passed through different crisis phases and
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Preface, Abstract and Acknowledgement

required the application of different financial and managerial instruments including cash flows optimisation model, optimal post-loss investment model, EOQ,
optimal capital structure, project management techniques, business impact analysis (“BIA”), target-orientated advertising and promotion, and appropriate communication policies with internal and external stakeholders. The findings indicate
that an integrated approach is required to effectively manage crisis and return
SMEs to their normal trading position at a minimum cost and within the shortest
possible time.
The various financial and other models applied in this book are found to be
valid and plausible in that they adopt an integrated and comprehensive approach
to financial activities of SMEs in crisis mode, can be applied consistently under
different scenarios and to data extracted from different entities, and produce results
that are consistent with the findings of other studies, the underlying theories and
principles. In general, the models are appropriate for application by SMEs in the
event of a financial crisis resulting from a disastrous situation. The designs used to
formulate the optimisation problems in Microsoft Excel appeal to small businesses, as they do not appear to be overly complicated nor too difficult to understand. As a result, the approach developed in this book is robust and superior in its
design, application and outcome. This book has also extended the existing financial and business management theories and models of SMEs (which are well documented in Schaper et al., 2004 and Holmes et al., 2003) by providing an
integrated approach to crisis management of SMEs using optimisation models.
This study therefore offers some significant contributions in making a systematic study of financial activities of small- and medium-sized business organisations in financial crises mode by developing and adopting a new framework, by
identifying, modifying and applying various financial management tools and
techniques suitable to SMEs, and by adopting systems approach both at organisational and crisis management levels. The development and application of this
new approach to an abrupt financial crisis management is particularly important
due to the frequency and severity of man-made or natural disasters in Australia
and its potential application to SMEs in other economies beyond our border.
The authors thank Ms. Margarita Kumnick and Mr. Kashif Rashid for their
editorial and research assistance throughout the preparation of this book.
M. Aba-Bulgu and Sardar M. N. Islam


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Foreword

Book entitled Corporate Crisis and Risk Management: Issues, Mathematical
Modelling, Strategies, and Small and Medium Size Enterprise Applications by
M. Aba-Bulgu and Sardar M. N. Islam.
There are only a limited number of research-based books dealing with such an
important topic as crisis management. This is one of those books. Its strength is
derived from the theoretical underpinnings and support from empirical academic
research findings. Furthermore, the authors expand their critical reasoning into
key managerial implications stemming from research work. There are also a number of challenging topics such as “customer focused recovery”. The authors are
also concerned with regard to the issue of validation and plausibility of the existing models.
The underlying research contributions behind the text clearly “shape” its content and effectiveness. The case studies provide the “raw data” as the authors
develop an interesting comparative framework. The key “tripod” for the analytical content of this book is clearly – Corporate Crisis, Risk Management and . . .
Optimisation Modeling ! . . . quite a challenging and terrific intellectual “combinatorial explosion” . . . !
Professor Luiz Moutinho
School of Business and Management
University of Glasgow

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Contents

Preface, Abstract and Acknowledgement

v

Foreword

vii

List of Tables

xv

List of Figures

xvii

List of Appendices

xix

1.

Introduction
1.1 Background
1.1.1 SMEs in Australia
1.1.2 Disasters and Business Disruptions in Australia
1.2 Modelling Crisis Management
1.3 Limitations of Current Literature and Motivation of the Research
1.4 Aims of the Research
1.4.1 General Aims
1.4.2 Specific Aims
1.5 Significance of the Study
1.6 Methodology of the Research
1.7 Structure of the Research

1
1
1
3
5
6
8
8
9
9
10
11

2.

Planning for Crisis and Risk Management: A New Approach
2.1 Introduction
2.2 The Basic Concepts
2.2.1 The Concept of Crisis
2.2.2 The Nature of Financial Crisis
2.2.3 The Nature of Risk Analysis
2.3 Literature Review
2.3.1 Existing Literature
2.3.2 Limitations of Existing Literature

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2.4 The Elements of the New Approach
2.5 The Theoretical Framework of the New Approach
2.6 Planning Models for Crisis Management
2.6.1 Planning Format
2.6.2 Financial Crisis Management Model
2.6.3 Financial Crisis Management Phases
2.6.4 Systems Approach to Crisis Management
2.7 The Advantage of the New Approach
2.8 Conclusion

26
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30
30
33
35
36
37

3.

The Elements of the New Approach
3.1 Introduction
3.2 The Elements of the New Approach I: Financial Strategies
3.2.1 Risk Management

3.2.2 Insurance
3.2.3 Financial Engineering
3.2.4 Capital Budgeting
3.2.5 Post-Loss Investment Decisions
3.2.6 Abandonment, Salvage and Disposal Cost
3.2.7 Cash Flow Management
3.2.8 Optimal Capital Structure
3.2.9 Financial Distress Analysis
3.3 The Elements of the New Approach II: Management Strategies
3.3.1 Crisis Prevention and Control Mechanism
3.3.2 Corporate Governance
3.3.3 Business Ethics and Stakeholders Analysis
3.3.4 Marketing Management
3.4 Conclusion

39
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39
40
41
43
46
47
48
49
50
51
53
54
56

57
59
60

4.

Research Methodology
4.1 Introduction
4.2 General Research Methodology
4.3 Case Studies
4.4 Sample Selection and Sample Size
4.5 Sources and Type of Data Used
4.5.1 Data Sources
4.5.2 Type of Data Used
4.6 Models
4.6.1 Cash Optimisation Model
4.6.2 Optimal Post-Loss Investment Model
4.7 Computer Programs
4.8 Systems Approach
4.9 Conclusion

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5.

Case Studies
5.1 Introduction
5.2 Case Studies of SMEs Surveyed
5.2.1 Company A
5.2.2 Company B
5.2.3 Company C
5.2.4 Company D
5.2.5 Company E
5.2.6 Company F

5.2.7 Company G
5.2.8 Company H
5.2.9 Company I
5.2.10 Company J
5.2.11 Company K
5.2.12 Company L
5.3 Comparative Analysis
5.3.1 General Information
5.3.2 Business Structure
5.3.3 IT/Accounting Systems
5.3.4 Risk Management Practices
5.3.5 Nature of Disruption
5.3.6 Financial and Other Crises
5.3.7 Crisis Management Practices
5.4 Conclusion

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95

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102
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6.

Optimisation of Cash Flows
6.1 Introduction
6.2 Optimisation Theory
6.3 Optimisation of Cash Flows
6.3.1 The Essence of Cash Flow Management
6.3.2 Cash Flow Problem and Impact of Abrupt Crisis
6.3.3 Cash Flow Optimisation Modelling
6.3.4 Cash Flow Analysis — Case Studies
6.3.5 Results and Implications of Cash Flow Analysis
6.4 Conclusion

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109
109
112
112
113

118
130
137
142

7.

Optimal Post-Loss Investment Decisions
7.1 Introduction
7.2 Capital Budgeting Techniques
7.2.1 The Average Rate of Return
7.2.2 Payback Method
7.2.3 Internal Rate of Return
7.2.4 Net Present Value

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7.3 Post-Loss Investment Decisions
7.3.1 Post-Loss Investment Problem
7.3.2 Optimal Post-Loss Investment Model
7.3.3 Post-Loss Reinvestment Analysis — Case Studies
7.3.4 Uncertainty and Sensitivity Analysis of
Investment Decisions
7.4 Abandonment, Salvage and Disposal Cost
7.4.1 Abandonment
7.4.2 Salvage
7.4.3 Disposal Cost
7.5 Tobin’s q
7.6 Financing Replacement of Assets
7.6.1 Sources of Finance
7.6.2 Types of Finance
7.6.3 Optimal Capital Structure
7.7 Conclusion

8.

9.

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156

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172
173
174
175
176
176
177
178
179
179

Strategic Crisis and Risk Management Issues
8.1 Introduction
8.2 Crisis Preparedness
8.2.1 Crisis Control Models
8.2.2 Insurance
8.2.3 Business Impact Analysis (BIA)
8.2.4 Business Continuity Planning (BCP)
8.2.5 Monitoring and Early Warning System
8.3 Crisis Management Phases
8.3.1 Phase 1: Assessment of Incident
8.3.2 Phase 2: Crisis Management Planning
8.3.3 Phase 3: Temporary Resumption of Operations
8.3.4 Phase 4: Replacement and Reconstruction of
Tangible Assets
8.3.5 Phase 5: Marketing and Promotion
8.3.6 Phase 6: Permanent Resumption of Operations
8.4 Strategies and Policies in Crisis Management
8.4.1 Business Ethics and Stakeholders Analysis

8.4.2 Corporate Governance
8.4.3 Corporations Law
8.5 Conclusion

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186
188
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192
194

Summary and Conclusions
9.1 Introduction
9.2 The New Approach to Financial Crisis Management

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9.3 Major Findings
9.3.1 Crisis Preparedness
9.3.2 Adequate Insurance
9.3.3 Crisis Management Planning
9.3.4 Cash Flow Management and Cash Reserve
9.3.5 Optimal Replacement Policy
9.3.6 Customer-Focused Recovery
9.4 Implications
9.4.1 Crisis Management Studies
9.4.2 SMEs Management in the New Millennium
9.4.3 Insurance Industry and Affiliated Services
9.5 Validation and Plausibility of Models
9.6 Research Contributions

9.6.1 Corporate Planning Format
9.6.2 Systems Approach to Crisis Management
9.6.3 Holistic Approach to Crisis Management
9.6.4 Financial Crisis Management Curves
9.6.5 Financial Crisis Management Phases
9.7 Limitations and Future Research
9.8 Conclusions

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224

Appendix

225

References

339

Subject Index

355


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List of Tables

Table 1.1:
Table 1.2:
Table 2.1:
Table 2.2:
Table 3.1:

Table 3.2:
Table 3.3:
Table 4.1:
Table 4.2:
Table 4.3:
Table 4.4:
Table 4.5:
Table 4.6:
Table 4.7:
Table 5.1:
Table 5.2:
Table 5.3:
Table 5.4:
Table 5.5:
Table 5.6:
Table 5.7:
Table 5.8:
Table 5.9:
Table 5.10:
Table 5.11:
Table 5.12:
Table 5.13:
Table 6.1:
Table 6.2:
Table 6.3:
Table 6.4:
Table 6.5:
Table 6.6:

Businesses by employment category (2000/2001).

Persons employed by employment category (2000/2001).
Major crisis types.
The characteristics of abrupt and cumulative crises.
Z-Scores.
Z-Scores for Australian companies.
Element of crisis process continual improvement.
Details of businesses surveyed.
Elements of balance sheets.
Elements of profit and loss statements.
Elements of cash flow statements.
Financial ratios.
Non-financial variables.
Categories of mathematical modelling.
Company A financial performance.
Company A stock levels.
Company B financial performance.
Company C financial performance.
Company D financial performance.
Company E financial performance.
Company F financial performance.
Company G financial performance.
Company H financial performance.
Company I financial performance.
Company J financial performance.
Company K financial performance.
Company L financial performance.
Crisis impact analysis ($ per week).
The direct costs of crisis.
Cash flow projections for the weeks ending 01/07/04 ($).
Lending (investment) rates.

Borrowing rates.
Decision variables for investments (lending).
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15
16
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52
56
66
68
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96

97
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List of Tables

Table 6.7:
Table 6.8:
Table 6.9:
Table 6.10:
Table 6.11:
Table 6.12:
Table 6.13:
Table 6.14:
Table 6.15:

Table 6.16:
Table 6.17:
Table 7.1:
Table 7.2:
Table 7.3:
Table 7.4:
Table 7.5:
Table 7.6:
Table 7.7:
Table 7.8:
Table 7.9:
Table 7.10:
Table 7.11:
Table 7.12:
Table 7.13:
Table 7.14:
Table 7.15:
Table 7.16:
Table 8.1:
Table 8.2:
Table 8.3:
Table 8.4:

Decision variables for borrowing.
Cash inflow and outflow constraints ($’000).
Company A sales analysis.
Company A: Calculation of gross margin.
Company A: Estimation of cash outflows ($).
Company A: Free cash flow projections for
four months ($).

Company A: Cash flow optimisation model.
Company A: Estimation of free cash inflows.
Major results ($).
Lending and borrowing rates (%).
Sensitivity analysis of closing cash balance ($).
Pre-loss parameters ($ million).
Pre-loss NPVs of existing and potential
assets ($ million).
NPV of original investment ($ million).
Post-loss parameters ($ million).
Poss-loss alternative investment decisions ($ million).
Major categories of assets destroyed/damaged ($’000).
The impact of replacement cost and insurance
cover on optimality ($’000).
Company D estimated loss of earnings ($).
Company F estimated loss of earnings ($).
Company G post-loss alternative
investments ($ million).
Post-loss value of Company I ($’000).
Post-loss value of Company J ($’000).
Post-loss value of Company L ($’000).
NPVs of SMEs based on 15% cost of capital ($).
NPVs of SMEs based on 15% vs. 18%
cost of capital ($, %).
NPVs of SMEs based on reduced cash flows ($, %).
Functional units (subsystems) of SMEs surveyed.
Mitigation strategies for production loss.
Marketing strategies.
Stakeholders analysis — case studies.

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132
133
133
134
135
137
138
140
140
151
152
153
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161
163
164
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172
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195
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List of Figures

Figure 1.1:
Figure 2.1:

Annual cost of major disasters (1967–2004).
New theoretical framework for financial
crisis management model
Figure 2.2: Financial crisis management model.
Figure 2.3: Financial crisis management curve (the S Curve).
Figure 2.4: Financial crisis management curve (the N Curve).
Figure 2.5: Financial crisis management curve (the R Curve).
Figure 2.6: Financial crisis management curve (the H Curve).
Figure 2.7: Financial crisis management curve (the V Curve).
Figure 2.8: Financial crisis management model and crisis phases.
Figure 3.1: Optimal capital structure.
Figure 3.2: Scope of obligation
Figure 4.1: Financial modelling system.
Figure 4.2: Microsoft Excel and Solver windows.

Figure 5.1: General financial information.
Figure 5.2: Industry classification.
Figure 5.3: IT/accounting systems utilisation rate (%).
Figure 5.4: Risk management practices (%).
Figure 5.5: Cause of crises.
Figure 5.6: Level of damage.
Figure 5.7: Level of impact
Figure 5.8: Damage vs. impact (%).
Figure 5.9: Impact of crises (%).
Figure 5.10: Crisis management strategies (%).
Figure 6.1: Optimisation model.
Figure 6.2: An extract for the implementation of
cash flow optimisation model.
Figure 6.3: Solver parameters window.
Figure 6.4: Company A sales graph ($’000).
Figure 6.5: The cash gap.
Figure 7.1: The fourth phase of the financial crisis
management process.
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28
31
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34
34
50

58
72
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List of Figures

Figure 8.1: Organisational system based on open system.
Figure 8.2: Application of project management to financial
crisis management.
Figure 8.3: Application of marketing strategies to financial
crisis management.
Figure 9.1: Financial crisis management chart: the new approach.

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List of Appendices

Appendix 1.1

225

Table A1.1/1: Annual cost of major disasters (1976–2004).

225

Appendix 2.1

226

Table A2.1/1: Potential types of exposures (Rike, 2003).

226

Appendix 3.1

227

Figure A3.1/1:
Figure A3.1/2:
Figure A3.1/3:
Figure A3.1/4:

227
227
228
228

Trajectory of failure: type one.
Trajectory of failure: type two.
Trajectory of failure: type three.
Trajectory of success.

Appendix 3.2

229

Figure A3.2/1: The component of Best Practice Model for
crisis management.

229

Appendix 3.3

230

Table A3.3/1: 13-Point plan for crisis control.
Figure A3.3/1: A multifaceted approach to crisis management.

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List of Appendices

Appendix 4.1
Figure A4.1/1: Interview questionnaire.

Appendix 5.1
Table A5.1/1: Textile tariff (%).

Appendix 5.2
Table A5.2/1: General information.

Appendix 5.3
Table A5.3/1: Business structure.

Appendix 5.4
Table A5.4/1: IT/accounting systems.

Appendix 5.5
Table A5.5/1: Risk management practices ($ million).

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232

241
241

242

242

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243

244
244

245
245

Appendix 5.6

246

Table A5.6/1: Nature of disruptions.

246

Appendix 5.7

247

Table A5.7/1: Financial and other crises.

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List of Appendices

Appendix 5.8
Table A5.8/1: Crisis management practices.

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248
248

Appendix 6.1

249

Table A6.1/1: Implementation of the cash flow optimisation model.
Table A6.1/2: Solution of the cash flow optimisation model.
Table A6.1/3: Answer report.
Table A6.1/4: Sensitivity report.
Table A6.1/5: Limits report.

249
252
254
258

261

Appendix 6.2

263

Table A6.2/1: Solution of cash flow optimisation model
(altered cash outflow).

263

Appendix 6.3

266

Table A6.3/1: Company A sales analysis.
Figure A6.3/1: Company A sales graph ($’000).
Table A6.3/2: Company B sales analysis.
Figure A6.3/2: Company B sales graph ($’000).
Table A6.3/3: Company C sales analysis.
Figure A6.3/3: Company C sales graph ($’000).
Table A6.3/4: Company D sales analysis.
Figure A6.3/4: Company D sales graph ($’000).
Table A6.3/5: Company E sales analysis.
Figure A6.3/5: Company E sales graph ($’000).
Table A6.3/6: Company F sales analysis.
Figure A6.3/6: Company F sales graph ($’000).
Table A6.3/7: Company G sales analysis.
Figure A6.3/7: Company G sales graph ($’000).
Table A6.3/8: Company H sales analysis.

Figure A6.3/8: Company H sales graph ($'000).
Table A6.3/9: Company I sales analysis.

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Figure A6.3/9: Company I sales graph ($’000).
Table A6.3/10: Company J sales analysis.
Figure A6.3/10: Company J sales graph ($’000)
Table A6.3/11: Company K sales analysis.
Figure A6.3/11: Company K sales graph ($’000).
Table A6.3/12: Company L sales analysis.
Figure A6.3/12: Company L sales graph ($’000).

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Appendix 6.4

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Table A6.4/1: Company A calculation of gross margin.
Table A6.4/2: Company B calculation of gross margin.
Table A6.4/3: Company C calculation of gross margin.
Table A6.4/4: Company D calculation of gross margin.
Table A6.4/5: Company E calculation of gross margin.
Table A6.4/6: Company F calculation of gross margin.

Table A6.4/7: Company G calculation of gross margin.
Table A6.4/8: Company H calculation of gross margin.
Table A6.4/9: Company I calculation of gross margin.
Table A6.4/10: Company J calculation of gross margin.
Table A6.4/11: Company K calculation of gross margin.
Table A6.4/12: Company L calculation of gross margin.

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Appendix 6.5

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Table A6.5/1: Company A estimation of cash outflows ($).
Table A6.5/2: Company B estimation of cash outflows ($).
Table A6.5/3: Company C estimation of cash outflows ($).
Table A6.5/4: Company D estimation of cash outflows ($).
Table A6.5/5: Company E estimation of cash outflows ($).
Table A6.5/6: Company F estimation of cash outflows ($).

Table A6.5/7: Company G estimation of cash outflows ($).
Table A6.5/8: Company H estimation of cash outflows ($).
Table A6.5/9: Company I estimation of cash outflows ($).
Table A6.5/10: Company J estimation of cash outflows ($).
Table A6.5/11: Company K estimation of cash outflows ($).
Table A6.5/12: Company L estimation of cash outflows ($).

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Appendix 6.6
Table A6.6/1: Company A free cash flow projections for four months ($).
Table A6.6/2: Company B free cash flow projections for four months ($).
Table A6.6/3: Company C free cash flow projections for four months ($).
Table A6.6/4: Company D free cash flow projections for four months ($).
Table A6.6/5: Company E free cash flow projections for four months ($).
Table A6.6/6: Company F free cash flow projections for four months ($).
Table A6.6/7: Company G free cash flow projections for four months ($).
Table A6.6/8: Company H free cash flow projections for four months ($).
Table A6.6/9: Company I free cash flow projections for four months ($).
Table A6.6/10: Company J free cash flow projections for four months ($).
Table A6.6/11: Company K free cash flow projections for four months ($).
Table A6.6/12: Company L free cash flow projections for four months ($).

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Appendix 6.7

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Table A6.7/1: Company A cash flow optimisation model.
Table A6.7/2: Company B cash flow optimisation model.
Table A6.7/3: Company C cash flow optimisation model.
Table A6.7/4: Company D cash flow optimisation model.
Table A6.7/5: Company E cash flow optimisation model.
Table A6.7/6: Company F cash flow optimisation model.
Table A6.7/7: Company G cash flow optimisation model.
Table A6.7/8: Company H cash flow optimisation model.
Table A6.7/9: Company I cash flow optimisation model.
Table A6.7/10: Company J cash flow optimisation model.
Table A6.7/11: Company K cash flow optimisation model.
Table A6.7/12: Company L cash flow optimisation model.

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Appendix 6.8

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Table A6.8/1: Company A estimation of free cash inflows.
Table A6.8/2: Company B estimation of free cash inflows.
Table A6.8/3: Company C estimation of free cash inflows.
Table A6.8/4: Company D estimation of free cash inflows.
Table A6.8/5: Company E estimation of free cash inflows.

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Table A6.8/6: Company F estimation of free cash inflows.
Table A6.8/7 Company G estimation of free cash inflows.
Table A6.8/8: Company H estimation of free cash inflows.
Table A6.8/9: Company I estimation of free cash inflows.
Table A6.8/10: Company J estimation of free cash inflows.
Table A6.8/11: Company K estimation of free cash inflows.
Table A6.8/12: Company L estimation of free cash inflows.

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Appendix 8.1

318

Table A8.1/1: Sample of a disaster/contingency plan.

Appendix 8.2
Table A8.2/1: Types of insurance covers (relevant to
SMEs and their owners).

Appendix 8.3
Table A8.3/1: Calculation worksheet for business interruption ($).

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319

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Appendix 8.4

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Table A8.4/1: Guide to business impact analysis.

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Appendix 8.5

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Table A8.5/1: Small organisation responses to preventative
management action.

Appendix 8.6
Table A8.6/1: Company A financial ratios.

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