As part of a €750 billion ($814 billion) aid package to protect the economy from the worst effects of the coronavirus outbreak, the German government (Federal Ministry of Finance) approved a supplementary budget totaling roughly €156 billion, which will be financed with new borrowing. This move into the red is a clear departure from Germany’s historically balanced budget and underscores a deep commitment to use “all we have” to reduce the impact of coronavirus.

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The relief—which includes billions in loan guarantees to secure corporate debt at risk of defaulting, as well as aid for small businesses and the self-employed threatened with bankruptcy—does not come without strings attached.

Yven Heine explains why business leaders must utilize robust risk management practices in order to avoid reputational damage or future penalties. The upside is that robust risk management protocols are good for business, even when conditions normalize.

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About the Authors

Yven Heine

Yven Heine, a Managing Director with StoneTurn, has more than 20 years of experience in compliance and monitoring and risks and controls. Yven has worked with clients across industries such […]

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