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Poczter Writes About Protecting a Company from the Next Financial Disaster

Sharon PoczterDr. Sharon Poczter, chair of the strategy and entrepreneurship department at Sy Syms School of Business, recently published a piece in Inc. titled “How Can You Protect Your Company From the Next Financial Crisis?” on the occasion of the 10th anniversary of the 2008 meltdown. She proposed a checklist of four items. The first is a self-education in how a financial crisis happens and what it exposes about a company’s weaknesses. “It is important to understand which specific markets are currently vulnerable,” said Dr. Poczter, “and the extent of your company’s exposure to this vulnerability in order to prepare for the future.” Second, since she believes that the global corporate debt market is the market to watch in terms of future fragility, Dr. Poczter advises that “entrepreneurs should increase borrowing slowly, if taking on new debt at all is necessary.” Third, companies should hedge their exposure to China by “map[ping] out options to diversify their relationship to the Chinese economy.” Finally, “spending time to analyze the vulnerabilities of your business to the economic environment is an important step in protecting your company from future downturns.”