Demise of the Euro?

With the likelyhood of the breakup of the euro within the next months or even days. What will this mean for your business systems?
What will it mean for your business?

First we need to ascertain what the new currencies will be:
Northern Euro and Southern Euro?
Euro with New Greek drachma and New Italian Lira? May be even a Spainish and Portugese one thrown in.
Who can say at this stage!

What is certain is that new currency codes will be required at short notice along with conversations rates between the new currencies.
Will your business systems be able to cope?
When the Euro was introduced it was a slow process over several years. A breakup, should it come, will be without warning and will have to be accommodated in a few hours.

What you could be doing now - is
a) reducing your exposure to the Euro,
b) converting Euros bank balances into another currency,
c) invoicing in another currency in place of the euro,
d) trying to get suppliers to invoice in another currency,
e) investigating how to handle the new currencies and conversions of any assets and liabilites to new currencies.

Not all of this is possible as it will depend upon your customers and suppliers. Plus, exchange rates being what they are you can never be sure that a loss now want be much bigger if and when the "euro hits the fan"! Or, in fact become a profit due to market uncertainty being removed.

Therefore, I feel businesses need to be thinking about a strategy for all this uncertainty. Remember a risk managed, is far better than a risk ignored!