CMOs beware: A bunch of companies are running the risk of going bankrupt, according to FRISK scores.
It’s no secret that the economy has been in a bit of a slump lately. As demand wavers and capital gets harder to find, a lot of companies are running the risk of going bankrupt—and, according to FRISK scores, a bunch of them actually are.
For those of you who don’t know, FRISK is a predictive bankruptcy model that takes into account things like cash flow, liquidity, and solvency. And according to its latest scores, a lot of companies are in danger of hitting rock bottom. In fact, the number of companies with a “distressed” FRISK score—meaning they have at least a one-in-ten chance of going bankrupt within the next 12 months—has been rising steadily for the past few quarters.
What does this mean for CMOs? Well, for one thing, it means that your job just got a lot harder. With so many companies on the brink of bankruptcy, it’s going to be more difficult than ever to find the funding you need to keep your operations running smoothly. And even if you do manage to find the funding you need, there’s no guarantee that your company will be around long enough to make use of it.
Of course, there are always ways to cut costs and increase efficiency—but in an environment as uncertain as this one, even those measures may not be enough to save your company from bankruptcy. So what can you do? Well, you could try diversifying your income sources or finding new markets for your products and services. But at the end of the day, there’s no surefire way to protect your company from bankruptcy when so many others are struggling just as much as you are. All you can do is hope for the best and prepare for the worst.
If you’re a CMO, now is the time to be extra careful with your company’s finances. With so many businesses on the verge of bankruptcy, it’s more important than ever to make sure you’re not overspending or putting all your eggs in one basket. Diversify your income sources, cut costs where you can, and hope for the best—because in an economy like this one, that’s really all any of us can do.