Avenues Of Cost Reduction Without Impacting Revenue Generation 

Challenges Of The Indian Economy: Strategy- Setting, Financial Planning, And Risk Management

Indian economy is facing major challenges and uncertainties. Increasing current account and fiscal deficit, depreciating rupee, rising inflation, slowing down of growth in various sectors, all put great pressure on the economy. Vagaries in the economy have its direct and indirect impact on corporate world also.

At organizational level, a total transformation is called for to face the challenges, survive the unfavorable conditions and thrive. Finance in any organization has a major role to play in this transformation, transforming itself and also helping the organization to transform.

Risk management becomes a matter of prime importance in the present scenario. Finance needs to monitor the multiple risks that the organization is exposed to and needs to take and suggest timely mitigation measures. If there is foreign exchange exposure by way of imports/ exports, steps should be taken to ensure that company does not get an unexpected hit.

Controlling costs and conserving cash is another area where attention should be given. Avenues of cost reduction without impacting revenue generation are to be identified and acted upon.

Providing real time and forward looking financial insights and analysis helps the  management in taking timely strategic decisions, giving the organization an edge over their competitors. Hence, it is important that finance is equipped to provide such insights by developing reporting and analytical tools and capabilities on an ongoing basis.

Finance should also help to prioritize and focus enterprise on areas of greater potential return through constant analysis of performance data. This is also true regarding identifying areas for cost savings.

"Times of great difficulties are also times of great opportunities"

Finance with its central role in any organisation can act as change agents and drivers of enterprise wide collaboration to respond to the challenges effectively. They can play an  important role in integrating financial and operational data thereby providing greater visibility through partnership and powerful enabling technologies.

Times of great difficulties are also times of great opportunities. The general slowdown experienced in the economy can be used as a time to prepare oneself for the boom that can be expected once the economy recovers. It can be taken as a time for investing in business improvements, training and marketing.

Though the challenges faced by Indian economy look massive, we as a nation, as during previous occasions need to face and survive them and come out stronger. The government as well as each and every one of us should equip ourselves and rise to the task at hand.