Don’t panic. Bank failures, severe weather, economic recessions…yes, these are issues of concern. But don’t panic.
Don’t put your head in the sand, take action, and don’t waste your time worrying.
Silicon Valley Bank failed on Friday. Wow! This is scary. Is the banking system going to collapse? Is our money safe?
Don’t panic, be proactive. Meet with your banker if you have more than the $250,000 balance that FDIC insures. Make sure you are comfortable with the “collateral” the bank is pledging to secure your organization’s bank deposits.
With rising interest rates, yes, of course the VALUE of these pledged collateral assets is going down. So, make sure your bank has set aside enough collateral to ensure your deposits are safe.
The banking system has the full support of the US government. Criticize all you want, but rest assured that Uncle Sam is working with all government agencies to ensure that financial impacts are managed to minimize the impact on individuals, businesses, and government.
If you just lost a key employee, remember how we talked about the need to work with HR to make sure you find out why your employee left. Then you make adjustments and begin recruitment to bring a new employee on your team.
Plan for disasters. Have a “go bag” ready. Have emergency procedures and practice for the unfortunate event where you have to activate your emergency preparedness plans.
My municipal organizations have an EOC (emergency operations center) set up to deploy in the event of an emergency. Make sure you’re involved in preparing for disasters and stop worrying to the extent that you have done your best to prepare.
If you sit there worrying about the banking system, the threat of economic recession, etc., YOU HAVE TOO MUCH TIME ON YOUR HANDS.
Let’s get to work. There’s so much financial, administrative, and other operational work to be done. We’re burning daylight, as John Wayne said!
In conclusion, keep in mind that often quoted “Serenity Prayer”:
God, grant me the wisdom to accept the things I cannot change,
Courage to change the things I can,
Wisdom to know the difference.
All for now,
John Herrera, CPA
MuniTemps – Municipal Staffing Solutions
CitySpeak the Podcast
Click here to watch video.