The Crisis or Restructuring Manager (Chief Restructuring Officer) is a function with experience both in the ordinary management of the company – they therefore share the language and working methods of directors, business management and entrepreneurs – and in the delicate events that characterise situations of corporate crisis and the subsequent intervention processes necessary for their resolution.
Crises are a part of company life (financial, industrial or commercial) that affects the relationship of trust between the company and everyone around it: suppliers, banks, customers, employees, public institutions.
It is therefore essential to take action early, at the first warning signal, with the necessary skills and credibility: and this is where the CRO intervenes in their capacity as resolution manager for the business crisis.
The figure of the CRO represents change – that is, a breaking point with respect to management – and will have to strengthen contacts with all internal and external interlocutors.
With appropriate interventions to modify corporate governance, the CRO must be invested with the responsibility of defining and achieving the Recovery Plan, shared with the entrepreneur and with all stakeholders in the company.
This Plan must describe, in clear and well-defined points, the effects deriving from the strategies identified for the solution of the crisis.
The Recovery Plan will therefore have both an operational portion, made up of items and steps towards the final result, and a strategic portion, composed of objectives for repositioning and/or redefining the business towards a new path of economic and financial balance aimed at continuity on the Company’s market.