Risk Management in times of crisis is currently "bulletproof". If there is a time when it is most useful, it is now! Here are 5 tips to follow, whether you are a Risk Management consultant or a company owner.
The coronavirus (COVID-19) went from a growing medical crisis to a macroeconomic crisis in a matter of days. The potential impact of the virus has spooked markets around the world as it spreads outside of China. While no one is sure of the ultimate impact, it would be unwise for any nation or organization to ignore the rapidly spreading virus itself.
Because of its impact Risk Managers and internal controllers should now adopt a series of measures. Read also our article on the indispensable role of internal control and risk management for companies.
1. Risk management in times of crisis: setting up an emergency management system is essential
While it is impossible to anticipate all potential risks (certainly in the case of an epidemic like this one), having an emergency management system in place will help companies prepare organizationally to respond to an emergency, which is essential to avoid panic among risk managers in the first place.
An emergency management system will allow them to know who they can contact in an emergency, who is the first person in charge in an emergency situation, and the level of authority they have to respond.
2. Provide information on the evolution of risk management in times of crisis
There are many associated risks that are affected by this pandemic, such as cybercrime and fraud risks and fraud risks, reputational risks, supply chain risks, health and safety risks... etc.
The Risk Manager/Internal Controller is in the best position to provide new information to management regarding the impact of the pandemic on its risks in order to improve thinking about actions taken and planned. These risks should now be on the entity's radar so that they can be taken into consideration when making decisions.
3. Promote a culture of risk in the company
The human aspect of this crisis is fundamental and should also be explicitly addressed when implementing real risk mitigation measures. Risk professionals can play an active role in ensuring that risk management and business continuity measures must:
- Be clearly defined and understood;
- Made visible in the organization;
- Involve the entire organization;
- Be applied by management;
- Be executable ;
- Be continuously improved.
4. Review key objectives and priorities in light of current information
A review of the entity's objectives and priorities will be necessary. It will be necessary to ensure that a risk assessment of the impact of COVID19 on the company's main objectives has been conducted and that concrete response plans have been prepared and implemented;
5. Be agile
Having a discussion with senior management is the best way to add value at this critical time. This is probably not the best time to stick to control plans if it does not add value to the organization. It may be more beneficial for risk managers/internal controllers to temporarily focus more on their advisory role (e.g., on business continuity and crisis management).
Even in times of crisis, Blue Soft continues to interview candidates. Would you like to become a player in corporate risk management? Join our consultants!
Interested in a career in Risk Management? Discover the career paths of Jean-Philippe, Risk Management Manager and Aïda, Risk Management Consultant at Cloud Infrastructure.
