IDWS 16
Detecting and preventing crises early – through financial transparency with IDW S16.
The ability to act in a crisis begins with the right management system – not only once the crisis has already arrived.
Under §1 StaRUG, management bears the statutory responsibility to identify developments that threaten the company’s existence at an early stage and to take effective countermeasures – the IDW S16 standard defines what a robust system must deliver to fulfil this obligation.
In practice, the same structural weaknesses emerge time and again: risks are assessed in isolation, without connection to planning and operational control. Forecasting and liquidity management run separately. Measures are defined but not consistently tracked or evaluated for their actual effectiveness.
We analyse and strengthen your finance and controlling structures – from the data foundation and integrated planning to measure controlling – creating the basis for an early warning system that genuinely performs when it matters most.
early crisis detection
robust management systems
cash flow & measures
Benefits
Clear Direction for Management
An effective early warning system with clear documentation, defined escalation paths and robust approval processes that hold up when it counts.
From Risk Identification to Countermeasures
We close the gap between identified risks and trackable, structured and prioritised measures – before a financial weakness becomes a threat to the company’s existence.
A Consistent Overall Picture Instead of Isolated Reports
CFO and management receive an integrated view of earnings, cash flow, working capital and the impact of measures – consolidated into a standardised crisis dashboard that supports sound decision-making.
Strengthening Financial Stability
Covenants, maturities and liquidity buffers are actively monitored; countermeasures are planned and documented with realistic timelines – no surprises for banks, investors or shareholders.
Services
Finance & Controlling System Analysis
A structured assessment of data foundations, planning quality, forecasting processes and KPI frameworks – based on a proven IDW S16 review with clear prioritisation of the identified areas for action.
Assessment and Development of Integrated Planning
We review the consistent linkage of P&L, balance sheet and cash flow, validate scenarios (base / downside / stress) for completeness and plausibility, and ensure that planning assumptions are clearly documented and approved.
Optimising Liquidity and Risk Management
Building or sharpening a rolling liquidity plan, working capital management and active covenant and financing monitoring – with defined cash controls and clear escalation rules.
Implementing Effective Measure Controlling
We establish mechanisms for realistic quantification, planning and effectiveness tracking of countermeasures – with defined owners, binding deadlines and a controlling logic that automatically escalates in case of deviations.
Interested in an initial conversation? We are happy to hear from you at any time:
Manfred Hick, manfred.hick@drescher-consulting.de