Top tips for a CFO navigating a global period of instability
When a CFO of a private equity (PE) or venture capital (VC)-backed tech company plans for a global crisis, they need to focus on several strategic and financial aspects to navigate through potential challenges. A global crisis can be unpredictable, but preparation can help mitigate risks and position the company to emerge stronger.
Here are some key actions a CFO might take to plan for a global crisis:
1. Cash Flow Management
Focus on liquidity: Ensure that the company has enough cash reserves to weather a crisis. PE firms were actively telling their investments to pull all lines of credit at the onset of Covid even if the cash was not required.
Monitor cash burn: In a crisis, especially in tech companies that may not be profitable yet, it's crucial to control burn rates and ensure that spending is aligned with immediate priorities. Preference share coupons compound and roll up at 10-12% so this debt can be difficult to continually cover.
Implement cash flow forecasting: Regularly update cash flow projections, taking into account worst-case scenarios and potential disruptions to revenue streams. Many Tech businesses will have negotiated favourable loan terms during Covid, and these may be about to fall off a cliff edge.
2. Stakeholder Communication
Communicate with investors: Clear and transparent communication with PE/VC investors is essential. The CFO should provide regular updates on cash flow, the impact of the crisis on the business, and any required actions (such as fundraising or cost-cutting). Often getting ahead of the problem is advisable – don’t forget the PE/VC firms have large sums of money at stake and it is in their interests to work with you to find a solution.
Employee communication: The CFO, working with HR, should ensure that employees are kept informed, particularly around job security, compensation, and changes to business operations. Effective communication can help maintain morale and trust during uncertain times.
3. Risk Mitigation and Contingency Plans
Diversify revenue streams: Relying on a single revenue source can be dangerous in a crisis. The CFO should evaluate the diversification of the company’s income streams and prioritise business lines that are more resilient to economic downturns. Sometimes, it can lead to a decision whereby a low margin revenue stream could be given up focusing on a more profitable area of the business.
Supply chain resilience: For a tech company, disruptions in supply chains (especially for hardware or key tech infrastructure) can be critical. CFOs need to work with procurement teams to identify alternatives and backup suppliers.
Cost-cutting measures: Pre-identify areas where costs can be quickly reduced without undermining the core business, such as discretionary spending, overhead costs, and non-essential projects.
4. Market Analysis is key when building a business plan
Industry Trends and Crisis Impact: Discuss how the industry may be impacted by a global crisis (e.g., economic downturn, supply chain disruptions, changing customer behaviours) and how the company’s specific market can remain competitive.
Competitive Landscape: Assess key competitors and their likely responses to a crisis. This allows the company to identify where it stands in comparison and pinpoint areas for strategic advantage.
Customer Segmentation: Understand how crisis conditions might affect different customer segments and identify which segments are more resilient or likely to have evolving needs.
In a crisis, agility is key. The CFO must stay closely connected to the leadership team, investors, and other stakeholders to navigate financial pressures, adjust strategy quickly, and secure the future of the business. Having solid financial models, clear communication, and risk mitigation strategies can make a significant difference in weathering a global crisis successfully.
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Sabina Ciofu is International Policy and Strategy Lead at techUK, where she heads the International Policy and Trade Programme. Based in Brussels, she shapes global tech policy, digital trade, and regulatory cooperation across the EU, US, Canada, Asia-Pacific, and the Gulf region. She drives strategy, advocacy, and market opportunities for UK tech companies worldwide, ensuring their voice is heard in international policy debates.
With nearly a decade of previous experience as a Policy Advisor in the European Parliament, Sabina brings deep expertise in tech regulation, trade policy, and EU–US relations. Her work focuses on navigating and influencing the global digital economy to deliver real impact for members.
A passionate community-builder, Sabina co-founded Young Professionals in Digital Policy (800+ members) and now runs Old Professionals in Digital Policy (more experience, better wine, earlier nights). She is also the founder of the Gentlewomen’s Club, a network of 500+ women supporting each other with kindness.
She holds advisory roles with the UCL European Institute, Café Transatlantique (a network of women in transatlantic tech policy), and The Nine, Brussels’ first members-only club for women.
Recognised by ComputerWeekly as one of the most influential women in UK tech, Sabina is also a sought-after public speaker on tech, trade and diversity.
Sabina holds an MA in War Studies from King’s College London and a BA in Classics from the University of Cambridge.
Senior Policy Manager for International Policy and Trade, techUK
Daniel Clarke
Senior Policy Manager for International Policy and Trade, techUK
Dan joined techUK as a Policy Manager for International Policy and Trade in March 2023.
Before techUK, Dan worked for data and consulting company GlobalData as an analyst of tech and geopolitics. He has also worked in public affairs, political polling, and has written freelance for the New Statesman and Investment Monitor.
Dan has a degree in MSc International Public Policy from University College London, and a BA Geography degree from the University of Sussex.
Outside of work, Dan is a big fan of football, cooking, going to see live music, and reading about international affairs.
Theo joined techUK in 2024 as EU Policy Manager. Based in Brussels, he works on our EU policy and engagement.
Theo is an experienced policy adviser who has helped connect EU and non-EU decision makers.
Prior to techUK, Theo worked at the EU delegation to Australia, the Israeli trade mission to the EU, and the City of London Corporation’s Brussels office. In his role, Theo ensures that techUK members are well-informed about EU policy, its origins, and its implications, while also facilitating valuable input to Brussels-based decision-makers.
Theo holds and LLM in International and European law, and an MA in European Studies, both from the University of Amsterdam.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the 2024 Local and General Election, and working for the Casimir Pulaski Foundation on defence and international secuirty. She has worked for multiple charities, on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). In 2023, Tess obtained her Bachelors of Arts in Politics and International Relations from the University of Nottingham.
Ryan Day leads the technology sector team, having provided audit, accounting, taxation and strategic advice to a range of clients in this space for over 15 years. He is also a core member of the financial services sector team, due to the overlap with FCA regulations that impact his FinTech clients. Ryan’s experience and access enable him to add value, disseminate ideas and views, and ensure that his clients remain ahead of the curve.
Within the firm’s international services group, Ryan focuses on serving clients in North America. His client base includes subsidiaries of US-based groups starting out in the UK, scale-ups undergoing significant fundraising and multinational groups seeking expansion opportunities.
Ryan is highly regarded for his straight-talking, down-to-earth style. Some of his long-standing clients have been with him since he joined the firm as a school leaver in 2007, a testament to his approachable nature. His ability to simplify complex areas and communicate them effectively makes Ryan a trusted partner to everyone he works with.