Calling Out COVID-19

Calling Out COVID-19

Business Strategies for Surviving a ‘Pompeii Event’

Faisal Sheikh, Nigel Krishna Iyer, Brian Leigh,

and Geetha A. Rubasundram
Calling Out COVID-19: Business Strategies for Surviving a ‘Pompeii Event’

Copyright © Business Expert Press, LLC, 2021.

Cover design by Charlene Kronstedt

Interior design by Exeter Premedia Services Private Ltd., Chennai, India

All rights reserved. No part of this publication may be reproduced,

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First published in 2021 by

Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
[Link]

ISBN-13: 978-1-63742-050-8 (paperback)

ISBN-13: 978-1-63742-051-5 (e-book)

Business Expert Press Financial Accounting, Auditing, and

Taxation Collection

Collection ISSN: 2151-2795 (print)

Collection ISSN: 2151-2817 (electronic)

First edition: 2021

10 9 8 7 6 5 4 3 2 1
This book is dedicated to all the (living and fallen) global frontline heroes,
be they clinicians or chaplains or cleaners or carers, who continue to ­battle
COVID-19…THANK YOU!

Also, special thanks to the international teams of researchers who have

managed to create a suite of vaccines in such a record-breaking time.

You never know how strong you are until being STRONG is the only
choice you have.
—Anonymous
 Description
We are currently experiencing the second wave of an unprecedented
global pandemic–the COVID-19 crisis, which is destroying established
industries such as tourism and attributing to the death of millions of
people worldwide. The authors believe that the pandemic is analogous
to the ancient Roman tragedy of Pompeii when the citadel was buried
under four to six meters (13 to 20 feet) of volcanic ash and pumice in the
eruption of Mount Vesuvius in AD 79.
This book is written for business owners, entrepreneurs, leadership,
or management teams in public or third sector and professionals who
are currently dealing with the COVID-19 epidemic. It offers tools and
techniques located in the economics of innovation, other frameworks
such as the Fraud Triangle, and the authors extensive experience
including rigorous cash management, practical fraud prevention, and
detection and advice on implementing and refining corporate governance
structures. The book will also be of interest to postgraduate including
MBA students and business researchers.
The book concludes by summarizing the key theories that can be
used to understand the ­impact of this Pompeii Event and pragmatic
solutions to fight COVID-19. The authors argue that organizations
rooted in foresight will survive and emerge as future trail blazers.
An extensive appendix is also included which outlines the implications
for financial reporting.

Keywords
COVID-19; Pompeii Event; innovation; crisis; uncertainty; decision-
making; cash management; fraud prevention and detection; corporate
governance; foresight
 Contents
Reviews�������������������������������������������������������������������������������������������������xi
Foreword���������������������������������������������������������������������������������������������xiii
Acknowledgments��������������������������������������������������������������������������������� xxi

Chapter 1 “Pompeii Event”: The COVID-19 Catastrophe����������������1

Chapter 2 Innovation 101���������������������������������������������������������������15
Chapter 3 Cash Flow Management 101������������������������������������������31
Chapter 4 Fraud 101�����������������������������������������������������������������������53
Chapter 5 Corporate Governance 101��������������������������������������������73
Chapter 6 Conclusion�������������������������������������������������������������������105

Appendix: COVID-19 Implications for Financial Reporting������������������109

Bibliography���������������������������������������������������������������������������������������121
About the Authors�������������������������������������������������������������������������������125
Index�������������������������������������������������������������������������������������������������127
 Reviews
“A romping, interesting, and well-informed read—not a standard
­recommendation for many business and accounting texts. The text reiterates
the need for trust, good leadership, and the importance of the work force,
in the creation of real—living and breathing best in practice, global gover-
nance. Behavior and good communication, inside and outside the organi-
zation; the move onward from beyond budgeting and agile management, to
well informed global management control. A valuable and interesting text
for executives, managers, and business students, if they want to survive, be
inspired, and respond effectively to a POMPEII EVENT.” —Eileen Roddy,
Former Associate Dean Salford Business School, Managing Partner at
International Strategy Application, [Link]@[Link]

“Written while in the “teeth of the storm,” the authors’ comparison of the
unfolding catastrophe of the 2020 Coronavirus pandemic with the fate of
Pompeii in AD 79 is compelling. The socio-economic ramifications of the pan-
demic are likely to be with us for generations to come. In this book, the con-
nected strategies, activities, and risks posed to the corporate world are carefully
examined. That this latest Pompeii Event could be the threshold to a greener
world with increased importance assigned to CSR—leaves the reader with
some hope of a better future.” —Richard Williams. Staff Partner, Beevers
& Struthers, [Link]

“It’s a captivating 125 pages. Despite the fact that multiple authors were
involved in the project, its tone and style of presentation flow smoothly, and
the appearance of a single voice has been accomplished. The book has potential
for a wide and diverse user base. For instance, I can envision it being on a
reading list in an accounting seminar, in a business policy and strategy course,
a crisis management seminar, or even in a public policy course offered in a
sociology department.” —Professor Mark Bettner, Visiting Professor of
Accounting at Furman University, [Link]@[Link]
 Foreword

A Medical Doctor’s and CEO’s Perspective

A fantastic and informative read. As a medical practitioner and CEO,
Calling out COVID-19 is a quintessential read for everyone, the authors’
reference to a Pompeii Event is most fitting. 
COVID-19 has turned the global economy upside down, forcing
medicine and business to take a beating. This book offers a unique insight
into business strategy, that is, how to navigate COVID-19 with effective
brain-storming, innovation and a frugal approach. Lastly, Sheikh’s theory
of Smash, Grab and Go is genius, it is a crucial analysis of how to revisit
an organization’s capital investment structure, most pertinent during such
testing economic times.
Chapters 4 and 5 are particularly relevant for persons in positions
of authority, with compromised GDPs and soaring unemployment,
­disrupted supply chains have resulted in fertile ground for fraudulent
­activity. The authors identify the burning consequences of the pandemic,
educating the reader on the Fraud Triangle and, more importantly, the
appropriate safeguards to implement, so as “to spot it and stop it before
it spreads.” The subsequent chapter seamlessly transitions into corporate
governance. The acronym of VICTORY resonates with my professional
person, the logic of such concept is insightful and intelligent, more specif-
ically, Vision, a strategic and long-term mindset are crucial to be success-
ful. This coupled with Yahoo is truly splendid, that is, celebrating small
wins and learning from mistakes. 
By far, my professional career and position as a CEO have demanded
my consistent attention to the subjects flagged in Chapter 4 and 5.
­Corporate governance within the Gulf remains relatively new, the Arab
Spring has allowed the Middle East and its inhabitants to enjoy much
wealth, but with depleting oil reserves, alternative business revenues are
xiv Foreword

being explored within the region. The authors explore the necessity for
“fairness, transparency, honesty, responsibility and reputation,” concepts
that run true within the Gulf. I do, however, implore the authors to tra-
verse the borders of the UK and the United States, while the West maybe
considered pioneers of such concepts, the Middle East is attending to
corporate governance with a cultural “Je ne sais quoi” which requires
additional exploration and focus. I am dedicating considerable efforts to
spearhead such efforts in my company, with a belief that such matters will
echo throughout the Gulf business world. 
I applaud the collective efforts of all the authors, Accountants v
COVID-19, is well written, the fine finesse and attention to detail are
evident in each chapter, well supported by extensive research and relevant
examples. In short, this book is a must have for any individual seeking a
better understanding of Covid-19, the current economic climate, and
how to succeed in the face of adversity. 
I am truly humbled and feel most fortunate to be penning a foreword
for such an esteemed team of authors, you continue to educate, inspire,
and motivate, I remain, forever grateful. 
Dr. Yasmin Abdul Ghahfour, CEO 
ACT Group for Economic Administrative
and Financial Investments 
[Link]

An FD’s / CFO’s Perspective

Very often, business-related books focus on the history or research to give
advice on the way forward, but the authors here combine history and
research to inform the decision-making. In a logical way, the book com-
pares the historical devastation of Pompeii, which happened incredibly
quickly, to the impact of Covid-19 and the speed in which the world
changed but also that the path to recovery is long and different from what
we had before.
As business leaders, the book draws key aspects for us to consider as
we start economic recovery, even though the path we take may differ.
Not surprisingly, a key focus in the book is the importance of innovation;
the book covers what this means, why is it important, the 10 types of
 Foreword xv

innovation, and then how to go about it in a pragmatic way. We cannot

afford the time to theorize; speed, as we now know, is essential.
Also, essential, not critical, is cash. Many businesses will have and will
continue to experience tight cash flows for some time to come. The book
covers the devastating impact of the pandemic but more positively real
actions that all businesses could consider utilizing in order to protect and
sustain their cash flow.
Sadly, not all people act with honesty and integrity, and we have seen
many examples though the pandemic period of fraudulent behavior; it
existed before and will undoubtedly continue. The authors demonstrate
that as leaders, it is important for us to understand that the drivers will
be ever more present, and we all have a role to play throughout our
organizations to use the quote “See it, Say it, Sorted.”
Whether you run a small business or a global listed company, gover-
nance of the business, whether your view is that is it a recent phenomenon
or goes back centuries is now an embedded business requirement and, in
my view a critical part of the way businesses are run. Many of you will
remember some of the examples highlighted but perhaps not the knock-on
impact that they had. Again, you will find simple but effective guide to the
skills, behaviors, and subjects to aid your thinking and actions. It does not
need to be complicated, just appropriate for your business.
As a Finance Director with over 25 years’ experience, the last year has
been incredibly challenging; so many of the examples within the book
resonate with me, but more helpfully, provides actioned-orientated advice
that all businesses can consider. I love a list!
Finally, this book is not hard to read. We are all pressed for time, and
one of the real attributes of this book is that it is written in a way that
is easy to follow, the chapters can be read in isolation if you just want to
cover a specific topic, but in all cases, you have a to-do list.
Covid-19 is the Pompeii Event of our generation, which inevitably
has required businesses to reflect, change, and embrace a different future
if they are to survive and thrive.
Julie Charge
Finance Director and Deputy Chief Executive of University of Salford
[Link]
leadership-and-governance
xvi Foreword

An International Audit Partner’s Perspective

The COVID-19 pandemic has created unprecedented socio-economic
havoc on a global scale that continues in the shape of national lockdowns,
travel restrictions, and social distancing. The authors in the first chapter
emphasize the negative impact on the aviation and hospitality industries,
which have literally collapsed, leaving a deep wound that may never com-
pletely heal. The lead author explored the impact of other historical events
such Spanish flu and Ebola but COVID-19 has by far done more dam-
age. Hence, I appreciate the metaphor of the Pompeii Event as an attempt
to comprehend this seismic event. The future remains deeply uncertain,
which is a cause of even greater concern, as businesses operate in a highly
inter-connected global economy, including international supply chains.
I am deeply concerned for emerging markets and developing econ-
omies that were already under economic pressure and have been deeply
affected by this crisis. They are currently suffering from sharp economic
downturns coupled with an immense strain on already fragile or fractured
health-care systems, loss of trade and tourism, diminishing remittances,
poor capital flows, and a constrained financial environment, coupled with
insurmountable debt. Exporters of energy and industrial commodities
have already been seriously hit, including an unprecedented slump in oil
demand and destruction in oil prices. I believe fragmented and experi-
mental fiscal policies, including quantitative easing, will only exacerbate
the global economic depression, as the mountains of debt will need to
be serviced by future generations. As noted by the authors, the Bank for
International Settlements (BIS) (2020) has argued that the pandemic has
altered from a  liquidity crisis  in the early stages to a  solvency crisis  that
could deepen if the economic recovery is delayed.
Consequently, the tools and theories discussed in four well-argued
chapters covering innovation, cash management, fraud prevention and
detection, and corporate governance will prove to be life-saving initia-
tives for businesses in the thick of this Pompeii Event. I agree with the
authors that new business models are urgently required such as zero-hour
contracts rather than mass redundancies that destroy human capital.
On the other hand, businesses scramble for the best talent when there is
a rebound and need to re-invest heavily in re-training and development,
 Foreword xvii

which takes time to transform into superior productivity and profitability,

that is, a vicious cycle. I personally believe there should be more support
for entrepreneurship and self-employment, which will result in sustain-
able job and wealth creation. Readers will also derive benefit from the
separate appendix that details the financial reporting implications from
the fallout from COVID-19.
Overall, I commend the authors for their valiant efforts and fore-
sight to help solvent but cash-constrained firms across the world that urgently
require guidance to navigate and survive this epic crisis.
Saad Maniar FCCA
Senior Partner
Crowe Abu Dhabi
[Link]

A Financial Reporting Expert’s Perspective

At the date of writing this, it is almost 12 months since I left my previous
firm and started my current job. I needed fresh challenges and different
surroundings, and my impending move seemed the right thing to do.
If somebody said to me this time last year you will only visit your
new office twice over the next year, I would have thought they were mad.
My new job started just a couple of weeks into lockdown, and it started
via Zoom meetings and various calls with IT specialists to get my home
laptop compatible with the remote systems of my new workplace. Every-
thing was surreal; there was no need for me to get the train in the morn-
ing, I just walk into the front room, press a few buttons, and put on the
headphones, and via the magic of the Internet, meet some new colleagues
for the very first time.
The world had certainly changed, and many were facing uncertainty,
including myself, but I felt very lucky to be able to continue my work in
financial reporting, meet new clients, and meet new colleagues. A cou-
ple of months after joining my new firm, I get the opportunity to pres-
ent training materials across the UK and Europe, the Americas, and the
Caribbean. What a jet-set style I was leading on paper, where the reality
was, I was broadcasting live from the West Midlands. Given the effective
ban on traveling unless it was for essential reasons, the world suddenly
xviii Foreword

seemed such a large place; however, like nothing before, I was using tech-
nology to the extent that I could be anywhere at any time working live
with anybody across the world.
Following the Pompeii Event, it seemed like I was now living in real
time in a Hollywood movie, a simulation if you like, where the pandemic
had turned everything upside down and inside out. From the economic
perspective, it was clear that this Pompeii Event was going to be the larg-
est test of business models, markets, and financial reporting since the
Great Depression, but in a modern fully connected world full of surprise,
innovation, and great hesitance.
It is now 12 months on, and I am working in the same room, but
on reflection, feel as though the last 12 months could have been a dream
and I am suddenly in this new normal we often hear about. However, the
authors have captured the last 12 months since this Pompeii event and
have proven to me that this was not a dream.
This book took me on an amazing journey over the last 12 months,
affirming that the last 12 months really did happen. It reminded me of
many things I had forgotten about, big events that have since been brushed
under the carpet following repeated lockdowns, unprecedented govern-
ment intervention on a scale I never though possible, breakthroughs in
medicine in the form of new types of vaccines, business failures particu-
larly on the High Street, and the travel and hospitality sectors.
In the hope of becoming immune to COVID-19, we seem to have
become immune to big news events, have learned to expect the unex-
pected, nothing seems to shock us anymore. But, on the other hand, the
world is full of surprises. The book reminded me of all the great things that
the business community has achieved, how the workforce has remained
connected while friendships, and extended family life is more distant.
We are only at the start of the fallout from the Pompeii Event and
are yet to feel much of the consequences of the lockdown. This book,
however, contains everything to prepare finance professionals, business
owners, and interested parties for the fallout, and no doubt, the fallout
from the fallout.
The COVID-19 pandemic, the Pompeii Event, means going back to
the very basics of cash management and budgeting, looking at those things
afresh, rebuilding financial controls to cope with new types of working
 Foreword xix

environment, ensuring the board are at the helm steadying the corporate
ship through rocky waters, and ensuring stakeholders are served as well as
possible, dynamic approaches to governance will be required, and boards
will be tested like never before as they move into the survival mode.
All sides of the Fraud Triangle are hot—the scope for fraud from misuse
or theft of government support to corporate assets, the use of scams and
false businesses, has never been greater.
In short, this book covers everything to prepare us for the aftermath
of the Pompeii Event and is a stimulating synopsis of how we as individ-
uals, or as a group of individuals, can try and forge a path forward, as the
economy fights for survival.
Neil Parsons FCCA
Director—Head of Financial Reporting Advisory and Company Law
[Link]
 Acknowledgments
Writing this book, and above all, collaborating with my fellow authors
Brian Leigh (England), Nigel Iyer (Norway), and Geetha Rubasun-
dram (Malaysia) has been an immensely enriching experience. Heartfelt
thanks to our families who gave us the time and space to turn around this
book in such a short span of time.
This book will remain a bittersweet journey, as on the way, I lost my
sister-in-law, Assia, and father-in-law, Shah Ji. I battled COVID-19, and
thankfully emerged in awe of this dastardly disease. I believe that this
pandemic is merely a warm-up and the next revenge of Mother Earth or
Pompeii Event will be even worse. Caveat Emptor!
As ever, thank you to the BEP team, Scott Isenberg, Charlene Kronstedt,
and Sheri Dean, for their ongoing support and good humor. I remain
indebted to BEP for helping me find and cultivate my voice. Thanks to
the folks at Exeter, including Dhinesh, for such a stellar copy-editing job.
Finally, thank you to our gracious reviewers for taking time out of
their busy schedules and putting pen to paper. I am glad that my col-
league Neil Parsons survived the book and wrote in his submission e-mail:
…a superb read. It made my heart beat fast in some parts.
I am to learn…
Faisal Sheikh
February 2021
[Link]@[Link]
[Link]@[Link]
 CHAPTER 1

“Pompeii Event”:
The COVID-19 Catastrophe
Introduction
The novel coronavirus (COVID-19), acute respiratory outbreak crisis,
probably originated in Wuhan province, in China, in December 2019.
COVID-19 rapidly spread to more than 200 countries, in Asia, Europe,
the Americas, and Australasia. It has infected millions of human beings
and caused approximately one million deaths to date. The global spread
of this virus led the World Health Organization (WHO) to characterize
this highly infectious disease as a pandemic on March 11, 2020, as it
showed increasing human-to-human infection.
COVID-19 continues to exceed infection and death rates compared
to other recent coronavirus outbreaks such as MERS-CoV, SARS-CoV,
and seasonal influenza. Previous studies argue that movement restriction
is viewed as the optimal approach to control the spread of infectious dis-
eases such a COVID-19. This thinking forced governments across the
globe to impose unprecedented blanket lockdowns, travel restrictions,
and social distancing. This resulted in an unparalleled collapse in con-
sumer demand for goods and services, full or partially stalled produc-
tion, and the destruction of national and international supply chains. In
addition, the emergency or quarantine orders for preventing the spread
of COVID-19 has negatively enhanced social problems such as soaring
domestic violence, child abuse, alcohol and substance misuse, and severe
mental health issues as whole populations were in effect prisoners in their
own homes during lockdowns.
COVID-19 and the ensuing global depression has wrecked the entire
financial system. In 2020 Quarter 2 (Q2), gross domestic product (GDP)
in the UK shrank by a serious 20.4 percent. By contrast, throughout the
2008 recession, GDP contracted by no more that 2.1 percent in a single
2 CALLING OUT COVID-19

quarter. The last time this happened to UK GDP was due to agricultural
depression in the 17th century resulting in falling prices of two staple
­products, grain and wool, which continued to decline throughout the first
half of the 18th century. Currently, 8.1 million workers are furloughed,
with unemployment crossing 1.5 million and inflation is close to zero.
The world’s largest economy, the United States, suffered its worst
period ever in 2020 Q2, with GDP falling to an historic 32.9 percent.
Neither the Great Depression nor the Great Recession nor any other crash,
according to analysts, three dozen in total over the last 200 years, has ever
caused such a harsh impact on the U.S. economy. In stark contrast, the
worst quarter during the financial crisis of 2008 was the 8.4 ­percent GDP
drop in the fourth quarter of that year. U.S. unemployment is currently
15 percent and rising, and inflation is falling.
Entire industries such as aviation and hospitality are collapsing, and
even billionaires such as Richard Branson have asked for government bail-
outs. Investors have started to discount the liquidity risk in stock prices
and approximately $23Tn in global market value has been destroyed
since the outbreak, although there appears to be a bounce back across
global markets. Research suggests that investors respond not to infection
or death rates, but rather to the future trajectory of an outbreak such as
COVID-19. It is argued that markets decline when there is unpredict-
ably bad news, and rise when there is unexpectedly good news. However,
there remain solvent but cash-constrained firms across the world who require
support, and this insight was the reason for writing this book to help them
navigate and survive this epic crisis.
The lead author has termed COVID-19 as a Pompeii Event, which will
be discussed in further detail together with its impact on global b­ usiness.
The chapter will finish with an in-depth mini-case study on tourism
demonstrating the ferocity of this Pompeii Event.

The Pompeii Event—COVID-19 and the

Impact on the Global Economy
What constitutes a crisis? Booth (1993) defines crisis as a situation faced
by an individual, group, or organization unable to manage using normal
protocols. There are three types of crises, namely gradual threat, periodic
 “Pompeii Event”: The COVID-19 Catastrophe 3

threat, and sudden threat. Thus, COVID-19 is indeed a sudden threat,

which the lead author believes is analogous to the ancient Roman ­tragedy
of Pompeii when the citadel was buried under 4 to 6 m (13 to 20 ft) of
­volcanic ash and pumice in the eruption of Mount Vesuvius in AD 79.
According to ancient sources, the eruption lasted for two days. The
initial phase consisted of pumice rain, which lasted for approximately 18
hours, allowing most inhabitants to escape. The second day was full of
pyroclastic flows that began near the volcano, comprising of fast, thick, and
extremely hot ash clouds, destroying everything in its path and suffocat-
ing the remaining population and surrounding towns’ populations and
changing forever the landscape, including the coastline. By the evening
of the second day, the eruption finished, with only haze in the atmosphere
through which the sun shone poorly. The important thing to note is that
the explosion took place over several days almost in waves of destruction.
Pompeii was acknowledged as an important economic route for goods
that arrived by sea and were sent toward Rome or Southern Italy along the
nearby Appian Way. Consequently, there must have been severe economic
repercussions, which must have taken perhaps years to stabilize.
In the same way, COVID-19 is a Pompeii Event because the initial
eruption or rampant spread of the virus forced the Chinese government to
close the entire province of Wuhan, considered the manufacturing hub
of China, resulting in the severe reduction if not halting of global supply
chains. The breath-taking spread of the virus or pyroclastic flows to Iran and
Italy resulted in nation lockdowns, coupled with social distancing, which
planted the seeds of an unprecedented global depression. Consequently,
a nonfinancial or extreme health crisis, namely a pandemic, COVID-19,
triggered a global meltdown. The socioeconomic carnage was undoubt-
edly exacerbated by travel bans that severely affected the aviation and
hospitality industries, due to mass cancelations of sports events such as
the Champions League and the Olympics, which harshly impacted the
sports industry and the ban on mass gatherings causing distress to the
events and entertainment industries.
One could argue that the COVID-19 crisis is a Black Swan (Taleb
2010) event, which is an unpredictable incident beyond the normal,
­coupled with severe consequences. Black Swan events are highlighted by
their great rarity, extreme impact, and the widespread belief that they
4 CALLING OUT COVID-19

were, in hindsight, obvious. Examples include the 2008 financial crunch

and the 2001 dot com bubble. Some analysts argue that diversification
may offer some protection when a Black Swan event occurs.
However, COVID-19 has transformed into a global public health of
post-Biblical proportions and an economic crisis that has affected the $90Tn
global economy beyond anything experienced to date. According to Jones
(2020), “Some experts warn that half the world’s population will be infected
by year’s end, an incidence that could result in more than 100 million deaths.”
As of August 2020, the virus has even hit the remote Greater Andamanese
tribe, in Brazil, and an isolated tribe in India’s Andamans archipelago.
The nearest comparison in the modern era struck more than a
­century ago, when the so-called Spanish Flu devastated the world from
1918 to 1919. According to estimates, approximately 500 million ­people
were taken ill with the disease, which ultimately took the lives of about
50 ­million people worldwide. Even the H1N1 flu of 2009 was w ­ idespread,
but not as deadly, with an estimated 60 million cases in the United States,
causing less than 13,000 deaths.
Nowadays, companies operate in a highly inter-connected global econ-
omy, including international supply chains. Consequently, the economic
fallout from COVID-19 is extreme due to the global lockdowns in Q2,
coupled with ongoing social distancing. Thus, a ripple effect throughout the
global economy was inevitable and continues. In the immediate aftermath
of lockdowns, specific industries bore the brunt of the carnage. Retail and
hospitality industries came to a grinding halt and as all nonessential travel
collapsed, the airline and tourism industries, including oil producers, went
into free fall. Williamson (2020) noted, “While some producers reported
being busier as a result of stockpiling and anti-virus activities, notably in
the food and healthcare sectors, these are very much the minority, and
most sectors reported a rapid deterioration in demand and production.”
Manufacturing, apart from the medical industry, saw fewer orders as
consumer demand severely contracted. In the United States, retail sales fell by
8.7 percent in April 2020, the greatest monthly drop since the ­government
began collecting data. Data from the Federal Reserve highlighted the worst
dip in manufacturing output since the 1940s. Manufacturing Purchasing
Managers Index (PMI) fell below 50 in all major economies, including
the United States, the UK, and Japan, which is considered a contraction
 “Pompeii Event”: The COVID-19 Catastrophe 5

of activity. In addition, the precipitous fall in demand had a devastating

effect on employment. In March–April 2020, approximately 22 million
­Americans had filed for unemployment benefits, surpassing all records to
date, with another one million signing on in August 2020.
The economic shockwaves are being felt from Beijing to Los Angeles,
resulting in a drag on the world economy that has not been witnessed for
decades. Every region across the globe is subject to starkly revised growth
rates. East Asia and the Pacific will grow by a negligible 0.5 percent.
South Asia will shrink by 2.7 percent, Sub-Saharan Africa by 2.8 percent,
Middle East and North Africa by 4.2 percent, Europe and Central Asia by
4.7 percent, and Latin America by 7.2 percent. These slumps are expected
to overturn years of progress toward United Nations (UN) development
millennium goals and potentially send tens of millions of people back
into extreme and potentially permanent poverty.
Emerging market and developing economies will be battered by
­economic tsunamis, including pressure on already fragile or fractured health
care systems, loss of trade and tourism, diminishing remittances, poor capital
flows, and a constrained financial environment, coupled with insurmount-
able debt. Exporters of energy and industrial commodities have already been
badly hit, including an unprecedented slump in oil demand and destruc-
tion in oil prices. CNN Business (2020) cited in Poynter (2020) reported
“US oil prices plunged falling below $0 Monday to $-37.63 a ­barrel. That’s
the lowest level since NYMEX opened oil futures trading in 1983” in Q2.
Demand for metals and commodities used in the transport industry such
as rubber has also plunged. Although global agriculture ­markets are well
stocked and supplied, trade restrictions and severe supply chain disruptions
will create food security challenges, especially in sub-­Saharan Africa.
The International Monetary Fund (IMF) recently forecast a 3 percent
drop in global output in 2020, which would be the worst deterioration in
recent memory. The organization envisions a subdued recovery in 2021,
with GDP growth of a modest 5.8 percent worldwide.
It is argued that the, albeit brief, snapshot from the ongoing
socioeconomic fallout from the COVID-19 pandemic demonstrates
­
the momentous speed, scale, and scope of the unfolding crisis—the key
­constituents of a Pompeii Event (see Figure 1.1)—that has buried the global
economy and caused immeasurable socioeconomic carnage.
6 CALLING OUT COVID-19

Speed

Scale

Scope

Figure 1.1  Key constituents of a Pompeii Event

Consequently, it is argued by the authors that it will not be business

as usual, which occurred after the 2008 financial crunch, but a whole-
sale transformation in global socioeconomics. The authors argue that this
Pompeii Event will continue to create disruption—on a truly global scale,
and the ­strategy should be to stay ahead of the curve in one’s industry or
field and will potentially lead to greater self-reliance on a national and
­international level, aggravation—of pre-existing tensions such as the cur-
rent ­polarization of politics or mass migration or Brexit, redefinition—
of the global order especially Sino-U.S. relations, which continue to
worsen and return—of the next Pompeii Event, which is anticipated to be
­something related to climate change, see Figure 1.2.
The Bank for International Settlements (BIS) (2020) has stated that
future writers may describe the pandemic as, “the defining moment of the
21st century” or as the lead author has argued a “‘Pompeii Event’ not a
Black Swan event with further waves expected.”
 “Pompeii Event”: The COVID-19 Catastrophe 7

Disruption

Return
Pompeii Aggravation
Event

Redefinition

Figure 1.2  Continued fallout from the Pompeii Event

There was hope that there would be a recovery in Q3 of 2020 as

g­ overnments across the globe started easing social distancing r­ equirements
and reopening their economies which did not happen. However, this is
unlikely, as there ­continue to be regional and national waves of COVID-19
infections, ­resulting in regional or local lockdowns, and until a vaccine
is found, the 2020 n ­ orthern hemisphere winter appears to be ominous.
The U.S. Federal Open Market Committee (FOMC) suggested that
the rise in COVID-19 cases in the United States since mid-June was dam-
aging economic growth and that, “The path of the economy will depend
significantly on the course of the virus. The ongoing public health crisis
will weigh heavily on economic activity, employment and inflation in the
near term, and poses considerable risks to the economic outlook over the
medium term” (cited in Congressional Research Service 2020).
8 CALLING OUT COVID-19

The Global Fightback Against This Pompeii

Event—COVID-19 and the Immediate Future
After a tardy response, in part due to inconsistent and potentially flawed
data from China, central banks and monetary authorities across the globe
have set in motion an array of monumental interventions in financial
markets coupled with a raft of fiscal policy initiatives to stimulate their
faltering economies (gathered and created from various online sources),
Table 1.1.
Although global central banking spending including by the United
States and UK authorities has topped more than $4.5Tn, there remains
a tradeoff for governments, which is to save the people or save the economy.
The BIS (2020) has argued that the pandemic altered from a liquidity
crisis in the early stages to a solvency crisis that could deepen if the eco-
­

nomic recovery is delayed. This was further emphasized by IMF ­managing

director Kristalina Georgiev who stated in late March 2020 that the global
­

economy had entered a recession and called for very ­massive ­spending and

Table 1.1  Fiscal policy spending and policies to fight COVID-19

Total direct % of Loans and loan % of

Country spending GDP guarantees GDP
United States USD 484Bn 2.4 USD 2.3Tn 9.3
UK GBP 350Bn 11.8 GBP 350Bn 10.7
Canada CD 107Bn 6.2 – –
Czech Czk 100Bn 1.8 CZK 900Bn 15.9
Egypt EGP 50Bn 0.8 EGP 50Bn 0.8
Israel Ils 2.8Bn 0.4 – –
India IR 1.7Tn 967 USD 1Bn 0.04
Poland ZL 212Bn 9 ZL 700M 0.1
Nigeria NGN 3.5Tn 2.3 USD 6.9Bn 7.5
Romania RON 9Bn 0.9 EUR 400M 0.2
Russia RUB 1.4Tn 0.3 – –
Saudi Arabia SR 120Bn 3.9 – –
Turkey LR 100Bn 185 – –
 “Pompeii Event”: The COVID-19 Catastrophe 9

that, “A key concern about a long-lasting impact of the sudden stop of the
world economy is the risk of a wave of bankruptcies and layoffs that not
only can undermine the recovery but can erode the fabric of our societies”
(IMF 2020). She also argued that emerging markets will need $2.5Tn in
outside financing.
Why does the economic fallout continue unabated? Initially, during
the height of the pandemic when governments were enforcing blanket
lockdowns of people, economic activity practically ceased. The health of
people was put before their economic welfare, which continues to have
far-reaching consequences.
COVID-19 outbreaks are expected, and a major second wave was
expected in the winter months, as was witnessed in the UK. ­Inevitably,
restrictions on movement will be reintroduced or there will be extensions
that will damage economic activity, thus prolonging the global depression.
Businesses and individuals will probably struggle to service company and
personal debt, making the cost of borrowing more expensive, and ulti-
mately leading to mass company liquidations and ­bankruptcies, which
will exacerbate or deepen the global depression. According to this nega-
tive scenario, global growth could contract by approximately 8 ­percent in
2020 (World Bank 2020).
Some analysts argue that many lesser developed countries or ­emerging
economies were already suffering from poor growth before this Pompeii
Event. Consequently, efforts to contain COVID-19 where there was
already limited health care capacity could potentially hasten deeper and
longer depressions that may damage long-term growth prospects and
damage productivity. It is further argued that economies with informal
sectors accounting for one-third of the GDP and 70 percent of total
employment, such as in South America and South Asia, are particularly
vulnerable. Policymakers in these nations will need to implement wide
reaching income support and credit support programs.
This Pompeii Event, namely COVID-19, has affected every sphere
of global socioeconomic life and businesses need concrete solutions.
A ­mini-case study will explore the impact of COVID-19 on the travel
and tourism industries and offer some tangible solutions.
10 CALLING OUT COVID-19

Impact of Pompeii Event on Global Travel and

Tourism—A Mini Case Study
It is acknowledged that health is vital for an industrious and growing
society. On the one hand, anxiety and disease can wreck production,
consumption, recreation, travel and tourism, and general well-being.
An infection normally attacks weaker groups in society, such as the poor
and elderly, causing food and health care insecurity. On the other hand,
COVID-19 initially attacked international travelers, and the pandemic
was spread through travel and struck the affluent classes across the globe.
As already discussed, health calamities such as the Ebola virus in West
Africa, the Middle East Respiratory Syndrome (MERS) outbreak in the
Republic of Korea, and the COVID-19 pandemic negatively impacted
health and caused huge socioeconomic upheaval. During the Ebola
virus in West Africa from 2013 to 2014, government receipts, including
both direct and indirect taxes, dramatically fell and foreign investment
decreased by U.S. $600M over the two years. It was estimated that the
total global economic loss due to SARS was $40Bn. In a similar but stark
contrast, COVID-19 has severely disrupted global trade and supply chains,
weakened asset prices, and forced businesses to make difficult decisions with
limited information wiping 0.5 percent off global GDP, which equates to
approximately $300Bn.
Tourist arrivals in Hong Kong shrunk by 68 percent in two months
during the 2003 SARS outbreak and in South Korea international t­ ourists
severely contracted by 41 percent in the summer season. On the other
hand, analysts argue that COVID-19 has permanently changed the global
landscape and has severely damaged the international travel, ­tourism,
and hospitality industries, which are highly vulnerable to shocks like
COVID-19. These shocks are not new to the travel and tourism indus-
try, which has coped with natural disasters such as earthquakes, human
threats like terrorist attacks and the global 2008 financial crisis. Hence, the
global travel and tourism has managed to create risk m ­ itigation s­ trategies
and emerge stronger. However, the authors argue that the ­COVID-19
­pandemic is global, and the risk is not just about the travel and t­ourism
industry ­hemorrhaging cash or losing profitability but losing lives on a
­momentous scale. Thus, COVID-19 is a supershock or a ­Pompeii Event to
 “Pompeii Event”: The COVID-19 Catastrophe 11

the travel and tourism industry, a Pompeii Event of such epic p ­ roportions
that it has the power to trigger a seismic shift to parts, if not the entire,
global travel and tourism industry.
Ongoing international travel bans and mandatory quarantine for
returning tourists, affecting international air travel, resulted in tourism
mainly grinding to a halt in March 2020 and even the growth of travel and
tourism has been questioned. Chang et al (2020) suggest that the effect
on air travel, cruises, and accommodation has been disastrous. Tourism
is highly sensitive to official guidelines to counteract pandemics because
of limited mobility. Consequently, within a few months of COVID-19
­initially being recognized in China’s Wuhan province, in December 2019,
global tourism demand collapsed. In fact, the entire ­tourism value chain has
been influenced, and it has been reported that ­bookings are down from China
to Canada by approximately 70 percent, between October 2019 and March
2020. The situation worsened when the WHO declared a pandemic.
The  UN World Tourism Organization (UNWTO) (2020) declared
the tourism sector to be “one of the hardest-hit by the o­ utbreak of the
­coronavirus disease, with impacts on both travel supply and demand, par-
ticularly in China, the world’s leading outbound market in spending.”
It was forecast that Spain would have no tourists within weeks of the
outbreak period, and in Australia, there were potentially one million jobs
are under threat.
According to Ranasighe et al (2020), the March 2020 data ­published
by the global hospitality data firm STR suggests occupancy rates
approximately 96 percent down across the entire global hospitality
­
­industry due to the ongoing COVID-19 crisis. EY (2020) ­undertook
an extensive survey of the Cypriot tourism sector, and most of the
­participants expected to make losses, only 25 percent expected to reopen
in July 2020, and it was believed that foreign tourists would choose to
vacation at home, also known as staycation.
In response to the breakneck spread of the virus, governments across
the globe have embraced health-centric policies based on WHO (2020)
guidance, with the aim to control the human-to-human ­transmission
of the virus, and corresponding care for those infected. As already
­discussed,  the latter has resulted in unprecedented monetary and fiscal
interventions to contain the expected economic downturn.
12 CALLING OUT COVID-19

The travel and tourism sector is a vital pillar in any economy and
has an important role to play in the national and global economic
recovery. As noted earlier, the sector has proven to be resilient to global
shocks and helps other areas of the economy through ripple effects (EY
2020). However, COVID-19 is a Pompeii Event that will fundamen-
tally change the sector and a member of the EU Parliament’s Transport
and Tourism Committee, Karima Delli, astutely noted (EU Parliament
May 13, 2020):
“It is crucial to reassure citizens that tourism and travelling will be
possible and safe this year. We should use this crisis to redesign tourism
across the EU” (Emphasis by authors).
The preceding comment, especially the final comment, is hinting
toward innovation, which will be discussed in much greater detail in
Chapter 2.
No one can precisely forecast the final financial damage from COVID-19
to the travel and tourism industry. The authors believe that the travel
and tourism sector will probably witness mass redundancies, mergers and
acquisitions or rationalization, home or native tourism will boom with a
contraction of luxury travel and tourism as the market for international
tourism declines. Hence, the authors offer the following financial policy
prescriptions to protect international travel and tourism, rather than just
the typical heavy discounting in a crisis:

• Once government-backed job security programs, such as the

UK furlough scheme, are curtailed, companies should offer
zero-hour contracts rather than making staff redundant who
are the bedrock of the travel and tourism business.
• Offer freebies such gratis meals or drinks or faster check-ins or
check-outs or guided tours.
• Variable rates for all services by crafting no-frills, budget plus
and luxury products.
• Carriers should offer an adaptable travel waiver policy to their
customers and complimentary modifications to tickets to
maintain customer loyalty.
• Suspend noncancelable fees and credit card charges.
• Strategic marketing of the hashtag #Travel Tomorrow under
the patronage of the UNTWO.
 “Pompeii Event”: The COVID-19 Catastrophe 13

• Investing in innovative social media marketing campaigns,

across all platforms, especially those favored by millennials
such as Snapchat and Tik Tok, celebrating ethnic culture such
as the highly successful Incredible India.
• Airlines should offer an adaptable travel waiver policy to their
customers and complimentary modifications to tickets to
maintain customer loyalty.

How Should Businesses Across the Globe Respond to

This Pompeii Event—COVID-19?
In the current COVID-19 climate, an appropriate framework to help
navigate and respond is VUCA (volatile, uncertain, complex, and
­
­ambiguous). Introduced by the U.S. Army War College, VUCA described
the increasingly, if not permanently volatile, uncertain, complex, and
ambiguous world, following the end of the Cold War. The authors would
argue that the Pompeii Event—COVID-19—has dramatically ­intensified
the ­elements of VUCA. A summary of each section is as follows:

Volatile: On December 31, 2019, Chinese government officials ­confirmed

multiple cases of pneumonia from an unknown cause, and then a week later,
on January 07, 2020, the outbreak was identified as a new ­coronavirus.
Since then, there have been millions of reported cases and more than a
million fatalities worldwide, and COVID-19 ­continues to present health
experts with an extremely fast-moving situation. As the p
­ andemic grows,
the advice continues to change creating further ­confusion, u­ nnecessary
uncertainty, and anxiety.

Uncertain: The next phases of the Pompeii Event remain unclear, and the
only certainty is that a vaccine(s) may help. The lack of clear information
continues to feed the global hysteria and trauma, which was evidenced by
panic buying of items such as toilet roll, pasta, and hand sanitizer in the
early stages. Then, British tourists, during the summer of 2020, rushed
home to avoid fortnight quarantines from blacklisted destinations such
as Spain and France.
Complex: Due to the speed, scale, and scope of COVID-19’s global spread,
and the fact that people live and operate in an inter-connected world,
14 CALLING OUT COVID-19

it becomes increasingly difficult to fully comprehend the outbreak, let

alone the trajectory of the virus. It is abundantly clear that variables to
understand and counter this Pompeii Event cannot be understood or
­analyzed from merely one perspective such as economics and the occasion
demands an interdisciplinary approach. Thus, later chapters grounded in
innovation, financial management, counter-fraud, and corporate ­governance
will be introduced to offer a multifork response to this unprecedented moment
in history.

Ambiguous: As already noted, COVID-19 is unique, unprecedented, and

the lead author developed an analogy, namely the Pompeii Event, to cap-
ture the speed, scale, and scope of the crisis, which has not only buried the
global order, but continued waves of the virus will yield further disruption,
aggravation, redefinition, and return.

In a VUCA world, businesses across the world are scrambling to

s­ alvage what they can and move forward in the face of unparalleled uncer-
tainty. Contemporary scholarship about entrepreneurial u ­ ncertainty is
dominated by two main ideas: effectuation and causation (Read, Song
and Smit 2009). The effectuation research argues that entrepreneurs
acknowledge uncertainties and adapt to them by controlling their means.
By contrast, research with a causal orientation asserts that entrepreneurs
make efforts to reduce uncertainties through information acquisition or
planning techniques. Although entrepreneurs are thought to use both
types of logic in their efforts to transcend uncertainty, this book will focus
on the latter approach, namely reducing information asymmetries through
­planning techniques.
Hence, the central claim of the book is that the critical success
factors of survival and uncertainty are a continued drive for innova-
tion (­Chapter  2), sound cash management (Chapter 3), fraud prevention
and detection (Chapter 4), and robust corporate governance (Chapter 5).
A separate appendix has been added, which details the financial reporting
implications of the fallout from COVID-19. (NB: All s­ tatistics regarding
COVID-19 such as death rates or from the fallout of the pandemic for
example ­government spending were correct as at December 2020.)
 Index
Accountants versus COVID-19, 106 BP, 85–86
Accounting Standards Steering Brain-netting, 21
Committee, 74 Branson, Richard (Virgin), 2, 100
AEI, 81 Brin, Sergey (Google), 100
Aggravation, 6, 14 British Chamber of Commerce, 37
Air Asia, 31, 42–43 Browne, John, 86
Alibaba, 26 Bush, George W., 85
Amazon, 33, 99 Business Interruption
American Fenway Sports Group, 88 Insurance, 40
American Leasco Data Processing Buy Now Pay Later (BNPL) scheme,
Equipment Corporation of 45–47
New York, 82
American Securities and Exchange The Cadbury Report, 73–75, 78,
Commission (SEC), 96 87–90
Apple, 25, 36 Cadbury, Sir Adrian, 73, 87
Arthur Andersen, 84–85, 88 Cameron, David, 86
Artificial intelligence (AI), 23, 61, 101 Capital structuring, 34–35
Asset managers, 79 Cash dashboard, 41
Asset misappropriation, 59 Cash flow management, 31–51
Asset owners, 79 analysis of the Pompeii Event from,
AstraZeneca, 107 31–34
Audit, 93 Cash on demand, 42
Australian Bureau of Statistics, 34 Causation, 14
Chartered Institute of Management
Bank for International Settlements Accountants, 55
(BIS), 6–7 Chief finance officer (CFO), 43
Bank of America, 50 Clapham train crash, 90
Barclays Bank, 80–81, 92 Communities of practice (CoP), 25
Baxter, Cliff, 84 Companies Act (2006), 76
Bergin, Tom, 86 Companies Act (2013), 97
Berkshire Hathaway, 96 Company survival via acronym
Bezos, Jeff, 99 VICTORY, 101–103
Big Data, 27 contributions, 102
Black Lives Matter movement (2020), inquisitive, 102
50 organized, 102
BlackRock, 96 relax, 102
Board leadership and company timely, 102
purpose, 91 vision, 102
[Link], 99 Yahoo, 103
Boohoo Group plc, 87 Composition, 92–93
Bounce Back loan program, 37 Conran, Terence (habitat and
Bounce back recovery, 34 restaurant chains), 100
128 Index

Coronavirus Business Interruption travel and tourism sector and,

Loan Scheme, 37 10–13
Corporate and Criminal Fraud types of crises, 2–3
Accountability subdivision, 95 in United States, 2
Corporate bullying, 56 Cressey, Donald R., 53–54
Corporate fraud, 95 Criminal sanctions, 95
Corporate governance Customers who take unfair advantage,
America’s, 94–96 61
behavior of directors and, 76
defining, 73–79 Damon B. Bankston (ship), 86
development of, 79–87 Danone, 39
during Pompeii Event, 98–101 Davies, Lord, 92
India’s, 97 Deloitte, 38
response to this Pompeii Event, Digital innovation, 23
101–103 Digitalization, 36
types of, 87–98 Dirty money, 61, 62–63
UK’s, 90–94 Disruption, 6
Corporate social responsibility (CSR), Division of responsibilities, 91–92
77 Dodd–Frank Wall Street Reform and
Cadbury, 90 Consumer Protection Act,
2020 code, 78–79 95–96
Corruption perception index, 61 Dyson, James (Dyson products), 100
COVID-19, 1
affected global socioeconomic life Earnings before interest, taxes,
and businesses, 9 depreciation, and
airline industry and, 42–43 amortization (EBITDA). See
application of the impact of, EBITDA
114–115 EBay, 99
is Black Swan event, 3–4 EBITDA, 109–110
concerns, 113–114 adjusted, 111
on EBITDA, 109–110, 112–113 in credit transactions, 111
on EBITDAC, 112–113 impact of COVID-19, 112–113
IAS 16 Property, Plant, and outline of, 110–111
Equipment, 117 EBITDAC
IFRS 9 Financial Instruments, illegitimate add-backs, 113
118–119 impact of COVID-19, 112–113
IFRS 16 Leases, 118 Ebola virus, 10
impairments, 116 Economic band-aids, 37
implications for financial reporting, Economic system, innovation and,
109–119 17–18
inventory, 116–117 Economy
managing firm’s working capital circular flow of, 17–18
and, 40–43 equilibrium state of, 17
as a Pompeii Event, 2–7 Effectuation research, 14
Revenue Recognition, 115–116 Embracing curiosity, 66–67
short-term solution, 37–40 Enron, 83–85, 88, 90, 95, 101
social problems in, 1 Entrepreneur, defined, 98
sustainable finance and cash flow Entrepreneurial uncertainty, 14
opportunities in, 48–51 Evaluation, 92–93
 Index 129

External fraud, 59 Home Choice International PLC

Extraordinary, defined, 111 (HCL), 47–48
HP, 27
Fairburn, Jeff, 77 HSBC, 42, 50
False figures, 61
Fastow, Andy, 84 IAS 2 Inventories, 117
Financial stability, 95 IAS 16 Property, Plant, and
First World War, 98 Equipment, 117
Foxconn, 26 IAS 37 Provisions, 117
Fraud, 53–71 IBM, 35
being passionate and compassionate IFRS 9 Financial Instruments,
in dealing with, 67 118–119
defining, 58–64 IFRS 16 Leases, 118
examples, 57–58 Impairments, 116
external vs. internal, 59 India’s corporate governance, 97
major reasons for, 61–64 Industrial Revolution (1960 to 1830),
menace of, 54–58 98
organization against threat of, Innovation
55–56 defined, 16
pathways to eradicate, 64–71 digital, 23
precrime fraud triangle, 69–71 economics, 16–22
teamwork in, 68–69 effective brainstorming, 21–22
technology and, 69 frugal approach for, 26–30
types of, 60–61 importance of, 22–24
uncontrollable factors, 59–60 jobs-to-be-done framework, 19–20
The Fraud Triangle, 53–54 overview, 15
Frugal innovation (FI), 4R features of, during Pompeii Event, 24–26
27–30 prosperity and, 18–19
A Funny Thing Happened on the Way to Schumpeter’s theory of, 17–24
the Forum (film), 79 10 types of, 20–21
Insiders, 61
Gates, Bill (Microsoft), 100 Institute of International
GEC, 81 Finance, 50
Generally Accepted Accounting Intellectual Property (IP), 24
Principles, 85 Internal control, 93
General Motors, 96 Internal fraud, 59
Genesis, 79 International Monetary Fund (IMF),
Geodis My Parcel, 47 5
Georgiev, Kristalina, 8–9 Internet of Things, 24
Goal congruence, 75 Inventory management, 41
[Link], 22 Irish Open Source Ventilator
Graham, Simon, 96 community, 27
Grameen, 27
Greedy suppliers, 61 Jobs-to-be-done framework, 19–20
Green productivity, 106 Joeinig, Philipp, 99
Johns Hopkins Coronavirus Resource
The Hampel Report (1998), 88 Center, 27
Hayward, Tony, 86 Journeyman Distillery (Three Oaks),
H1N1 flu (2009), 4 16
130 Index

Key performance indicator (KPI), 43, Osborn, Alex, 21

101 Outsiders, 60–61
Kraft Foods Group Inc., 87–88
Page, Larry (Google), 100
Lay, Kenneth, 83–84 Parmalat, 85
Liquidity crisis, 8 Pergamon Press, 82
Liverpool Football club, 88 Persimmon plc, 77
LVMH, 26 Personal protective equipment (PPE),
15
Mad Man (1950), 21 Pfizer, 50
Malaysia Airlines, 42–43 Pfizer BioNTech, 107
Mandela, Nelson, 62 Philips, 50
Marks and Spencer Group plc Piper Alpha oil platform
(M&S), 77 explosion, 90
Marks, Michael, 83 Polly Peck, 82
Maxwell, Robert, 82 Pompeii Event
Medicare, 53 aggravation, 6
Meet the 2020 Consumers Driving analysis of cash flow management
Change, 35 in, 31–34
Menzies, John, 99 businesses across the globe respond
Mercedes, 25 to, 13–14
Merrill Lynch, 85 capital structuring in, 34–35
MERS-CoV, 1 cash flow and environmental
Microsoft, 46 future, 36–37
Microsoft Teams, 23, 32, 38 cash flow in, 37
Middle East Respiratory Syndrome cash flow management beyond,
(MERS), 10 43–45
Moderna vaccines, 107 corporate governance during,
Mondelez, 88 98–101
Morningstar, 50 corporate governance response,
MPESA, 27 101–103
M&S, 77, 83, 92 cost of fraud and, 55
MSCI, 50 cost of stopping and, 55
Musk, Elon (Tesla), 77, 100 COVID-19 as a, 2–7
Myners Report (2001), 88 digital disruption and, 45–48
disruption, 6
Nadir, Asil, 82 global fightback against, 8–9
Nasdaq, 96 impact on global travel and
Nasdaq index, 98 tourism, 10–13
National Association of Securities innovation during, 24–26
Dealers Automated key constituents of, 6
Quotations. See Nasdaq opportunity for reset in, 64
National Guidelines on Responsible redefinition, 6
Business Conduct (2019), 97 return, 6
NYSE, 95, 96 Precrime fraud triangle, 69–71
Progressive Corp, 40
Obama, Barack, 86, 95 Public Company Accounting
Omidyar, Pierre, 99 Oversight Board, 95
 Index 131

Public Interest Disclosure Act 1998 and cash flow opportunities in, 48–51
(UK), 90 defined, 48–49
Purchasing Managers Index
(PMI), 4 Tesla, 77
Pyroclastic flows, 3 Toshiba, 86
Trump administration, 95
Range of desperation, 45 Truth and Reconciliation
Redefinition, 6 Commission, 62
Remuneration, 94 TSB Bank, 37
Reputational damage, 64 Turnbull Report, 88
Research and development Tutu, Desmond, 62
(R&D), 23 Tyco, 83
Revenue Recognition, 115–116
Risk, 93 UK Companies Act (2006), 90
Robot fraud detector, 62 The UK Corporate Governance
Rose, Stuart, 92 Code (July 2018), 73–74,
76, 89
Saks Fifth Avenue, 39 audit, risk, and internal
Sarbanes–Oxley Act, 85, 89 control, 93
Sarbox, 95 board leadership and company
Sardar, Ziauddin, 108 purpose, 91
SARS-CoV, 1 composition, succession, and
SARS in South Korea, 10–11 evaluation, 92–93
Satyam Computer Services Company, division of responsibilities, 91–92
97 principles of, 90–98
Schenck Process LLC, 113 remuneration, 94
Schumpeter, Joseph, 17–24 UK Office for National Statistics, 33
Schumpeter’s 1953 innovation theory of The UK Stewardship Code,
trade cycle, 17 78, 88
criticisms of, 19 Ulwick, Tony, 19
Second World War, 98 University of Oxford, 107
Shareholders, 74 Unnecessary middlemen, 61
definition of, 75 Unusual, defined, 111
Singapore Airlines, 39–40, 43 UN World Tourism Organization
Singapore’s Networked Trade Platform (UNWTO), 11
(NTP), 42 Up Pompeii (BBC series), 79
Situational awareness, 66 U.S. Bureau of Economic
Skilling, Jeffrey, 83 Analysis, 34
Smith report, 88 U. S. corporate principles, 94–95
Solvency crisis, 8 U.S. Federal Open Market
South Sea Bubble Scandal, 80 Committee (FOMC), 7
Spanish flu (1918 to 1919), U.S. GAAP, 111–112
4, 105
Spencer, Tom, 83 Verizon Wireless, 23
Staycation, 11 20-20 vision, 55
Stepladder technique, 22
Succession, 92–93 Wall Street Crash (1929), 80
Sustainable finance Walmart, 47
132 Index

White-collar crime, 59, 95 Yahoo, 103

Wi-Fi, 23
WorldCom, 83 Zeebrugge ferry disaster, 90
World Health Organization (WHO), 1 Zero-based budgeting, 44
Wragge and Co., 96 Zero tolerance, 62
Zoom, 21, 23, 32, 106
Xbox, 46 Zuckerberg, Mark (Facebook), 100