The entire globe is going through a collective challenge in the form of this microorganism coronavirus or CoViD-19. The businesses and economies were quite booming in 2019 and the economic graph was on the rise with a low percentage of unemployed youth and the finances appearing to be in good shape. But the occurrence of such a worldwide crisis has put every organization’s Enterprise Risk Management Strategies to test. Companies that showed a preference for financial performance over business resilience in the pre-pandemic period now have to buckle up their seat belts really hard as they are exercising a lot of turbulence while planning their brand’s survival. The research conducted by Gardner states that it is necessary for businesses to tackle emerging risks with a clear set of actions and plans composed throughout enterprise risk management that can be implemented practically and not just in theoretical modules.
The situation demands the risk managers come to the forefront
Several surveys have been conducted among the risk managers and the results demonstrate that there is quite some resistance towards including the risk managers in the board meetings. Whereas the fundamentals of enterprise risk management state that the companies should follow the lead of risk managers in such situations and allocate adequate resources in order to support their effort to keep the organization afloat and sound in the present as well as the future. The managers should start implementing the tried and tested practices and come up with effective solutions for the sustenance of their company throughout these tough times.
Switch gears from risk monitoring to risk strategies
The amount of unpreparedness of several small and big corporations alike, on the coast of risk management, renders everyone completely dumbfounded. The companies having some sort of ongoing risk monitoring have had a tad bit of an advantage as they were able to foresee such a pandemic and report the risks to the higher authorities. They have assessed and quantified the risks and notified about the organization’s exposure. Other brands and companies can take note of such enterprise risk management and map out the risks on the basis of its priorities and model the impact on your existing processes and strategies. Monitor your supply chains, quantify the company’s economical capital, and how the organization and employees can compensate for the frontline workers.
Prepare for types of risks other than financial as well
The virus has infiltrated almost every country in the world and the world economy is in shambles. It is agreed that a company’s finances should be prioritized and in order for sustainability but there is a pressing need to be considerate towards other risks as well, like strategic, insured, compliance, IT, and human risks. The risk managers will have a lot to consider such as worker’s compensation in the occurrence of any employee being affected or keeping up with regulatory status and tighten cybersecurity in order to avoid any compliance risks. An organization should also keep third-party risks like supply chain disruptions and ensure that their enterprise risk management covers it thoroughly. In addition to this, this is the most crucial time for any company to lead with empathy, provide their employees with correct training and guidance for work from home, and retain essential talent and their productivity.
Finally, follow the national guidelines and prioritize health and wellbeing
There are several guidelines that have been issued by the World Health Organization for risk and impact assessment. Ensure that your business runs in compliance with these guidelines and is updated regularly as per the progression of the situation. We have to make a continuous effort to keep the brand humane and spread kindness and compassion in these trying times. The survival of the company in the future depends on the efficiency of enterprise risk management implemented today.