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.

1. The disruption caused by social distancing. Social distancing is a term applied to certain actions that are taken by public health officials to stop or slow down the spread of a highly contagious disease. During the peak, contagion periods policies of “social distancing” are likely to be necessary everywhere from workplaces to schools. Most business events and travel will be curtailed or canceled during this peak period. How will your organization generate revenue and execute operations with workplaces mostly either offline or remote?
2. The collapse of employee productivity. Every industry will be impacted, as organizations are likely to see. The essential part of the staff during this period may be unable to work due to sickness, either directly or indirectly. Even if your employees are not sick, many will be affected by the need to care for family members who are ill or need care. They may also need flexible working hours due to school and daycare closings.
3. Stressed supply chains. The global economy is still highly integrated and most countries and companies rely on vendors for their business. From crude oil and pharmaceutical raw materials to clothing and most consumer-good products, there will certainly be purchasing delays. Heavy equipment and manufacturing supply chains have already been impacted by coronavirus spreading across Asia, Europe and the United States. Let’s not forget, too, that a major trade war and competition with many trading partners remains unresolved.
4. Recession, unemployment, and investment pull-back. Business analysts’ forecasts indicate that the global economy will likely be in a full recession by the fourth quarter of 2020. Will consumers reduce their spending? Conferences are getting canceled. Corporations are asking people to work from home. Schools and universities are asking students not to return after Spring Break. Hospitality and travel industries are on the verge of extinction. The economic engine of growth driven by continuous investment and consumption has stalled out. Experts are uncertain whether a coronavirus vaccine will be available before the first quarter of 2021. Investments are highly negatively impacted by uncertainty and corporations will likely cut back growth investments, contributing to a rapid rise in unemployment. There may be significant layoffs at existing businesses in the “second wave” of COVID-19 that may surge again in the third quarter.
5. Economic instability and civil unrest. The U.S. budget deficit is at a record high. Government spending will increase fast but that may not be effective due to lack of planning and preparedness. Great Britain has left the European Union and is likely to see dramatic changes go into effect in December 2020 which are likely to trade immigration, and a large range of other areas of international business, at the same time the second wave of COVID-19 may be hitting.

All the listed effects are seasoned with people’s fear, lack of confidence, and feeling of insecurity. 

So what now? 

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.