The coronavirus pandemic situation is changing rapidly and needs a close and thorough monitoring. Alongside the obvious risks to human health, COVID-19 has serious impacts on organizations that arise from the travel and opening restrictions, event cancellations, workforce issues, supply chain disruptions, financial and market volatility, and cash flow problems.
Even though we don’t know how long the COVID-19 outbreak will last, what impact on the global economy, business, and people’s everyday life it will have, the effects of the coronavirus pandemic are predictable. The impact on organizations, customers, vendors, and communities is knowable.
As action remains elusive, there is a natural tendency for panic to arise. Clear and simple business risk assessment plan turns panic into productive and proactive steps that are aimed at fighting certain risks instead of confronting uncertain what-ifs.
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Enterprise Risk Management (ERM) is a technique and software infrastructure that makes those impacts clear to your organization, industry, and geography. It helps compile a plan of action and provides a mechanism for communication and implementation.
A risk management framework engages all your staff to support preparation and changes to reduce negative impacts from threats. Reducing the coronavirus negative business effect is imperative. With generated actions framework and enterprise risk management strategy, fear can be transformed into action and unease into the peace of mind.
Implemented principles, tools and techniques of risk management, business continuity and crisis response that can be deployed to help organizations prepare and respond to situations as we have now.
Hopefully, organizations will have business continuity plans which will form the basis of a response, but it is quite likely that they did not foresee a situation as widespread, complex, and long-lasting as we appear to be facing. And we will also see how well theoretical plans work when faced with real-life situations.
Coronavirus effects are considered to be uncertain both on people and the global economy. But if we change the point of view and take a closer look at the problem, we can see that there are certain risks companies face. To identify them and to compile an effective business risk assessment plan is the first step to successfully fight the uncertainty caused by coronavirus disease.
Here are some of the key risks that organizations face as the COVID-19 crisis deepens.
All the listed effects are seasoned with people’s fear, lack of confidence, and feeling of insecurity.
Organizations need to put in place mitigation plans to address each of these risks. By taking steps below they will be in a better position to reduce the risks that the coronavirus will have on their business.
The mitigation activities that your business can prepare can be wide-ranging depending on your industry, geography, size, and other factors. These initiatives may include activities that range from shifting budgeting from fixed costs to variable spending to provide flexibility in times of uncertainty.
Five risk management steps that organizations should think about as they defend themselves against the coronavirus effects are listed below.
In times of change, a unified enterprise-wide management mechanism is needed as an input to evaluate the effectiveness of mitigation and policy activities. It is necessary to provide all employees a way to escalate issues and concerns that can be turned into a FAQ published back out to all employees.
This gives workers confidence in their job safety and provides managers at the appropriate level a holistic view of what is happening in their teams, departments, and organization.
Is the only way to respond to coronavirus effects to wait for guidance from local, state or federal authorities or when quarantine is suddenly implemented?
The preparation process is to start at once through risk management to uncover many policies and processes throughout various business departments. A thorough and balanced business risk assessment is recognized as a key success factor under current conditions.
Director of Business Development
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