Preventing a Financial Crisis

Wednesday 04 May 2022: 10am – 12pm

Content Focus Area: EAP-CLIENT: Employee issues in the post-COVID workplace

Presentation Abstract:

The financial crisis many households had to endure during the global pandemic and lockdown could have been managed better if people were prepared. Whilst none of us could have predicted the pandemic, planning for financial crises would have brought some peace of mind and control over financial matters.

The negative impact of the damage continues to be felt by many and will continue to be felt long after the virus dies down. If there is anything that Covid has taught us, is that preparation can be achieved with proper education, foresight, and planning. Adequate savings would have bought people time to find their feet, navigate through the storm and spend time with those who matter. Proper and sufficient protection would have provided the finances needed in the event of loss of income due to job loss or death.

A paradigm shift was forced upon us and if we fail to learn from those lessons, then we have not learnt anything at all. Financial education could have better prepared us and now more than ever schools, parents, businesses, and government have a fiduciary responsibility to not allow the same fate upon us or our children.

Business use scenario planning to identify potential events that could impact its operations and revenue so that plans can be in place to manage a potential disaster. We apply these strategies to business but how many of us apply this same thinking to our personal lives. Scenario planning can help individuals to consider the possibility of the impact of certain events on their life and to ensure that they at least have a financial plan to offer them some peace of mind.

Managing through a financial crisis requires us to look at two sides of money. Most financial service providers and advisors consider only the technical side and implement and provide solutions around this. However, both the IQ (technical) and EQ (emotional) must be considered. The technical aspects provide the basic tools to manage money better, whilst the emotional side deals with our relationship, beliefs, and behavior with money. This session explores some ideas on how we can help employees navigate through a storm and how to recover from the one we are currently experiencing.

Learning Objectives:

1. Why financial education a critical skill we all need
2. Navigating through a financial storm
3. Recovering from a financial storm and planning for the future