Your company will likely be in crisis mode as COVID-19 continues to progress:
- Crisis management teams are working around the clock to address imminent issues – typically taking a 24- to 48-hour view on risks.
- Business continuity teams have activated BCP and are deployed to address strategic priorities – supply chain interruption, stock level assessments, rotating split critical teams, and more.
- Health and safety and HR colleagues are devising plans to ensure the health and wellbeing of all internal and external stakeholders.
- Corporate communications pour over their strategies, constructing daily messages and creating new ways to inform and engage the workforce – daily livestreams, vlogs, mobile apps, private messaging.
These activities happen daily. They are discussed with leadership, reviewed and updated.
Then discussed, reviewed and updated, again and again, and again – day by day.
Risk management filters through all these workstreams.
But as these teams take an ‘on-demand’ and immediate approach to the crises, can risk managers add another layer of value? Is now the time to take a longer-term view of the implications? Should you be assessing the lasting impact of COVID-19 on business, now?
Over the last month, we’ve been speaking to risk managers around the world – from locations who are at the start of the pandemic curve to those now at the peak.
And one message came out loud and clear.
Don’t wait until the crisis is over. Now is the time to take a longer-term view of the lasting impacts.
As one risk manager put it: COVID-19 has presented real, practical opportunities for risk managers to stamp their mark, gain a seat at the top table and build long lasting trust among stakeholders and the leadership. So, while crisis management and business continuity teams work on the ‘here and now’, you make your mark by nudging the business to look ahead.
Here’s how our community of risk managers are doing it – and their top 3 tips.
1. Don’t wait until the crisis is over – review your risk profile now
Your risk profile will change. It will look significantly different to your profile of 6 months ago.
New risks will be introduced. And the severity of some will have increased markedly.
Our community of risk managers are conducting their reviews now.
Rally together the risk team and assess your top 10 risks:
- Where are the movements?
- What risks have increased in severity?
- What are the consequences and impact for business?
- How will you monitor, treat, reduce and mitigate them?
- How does your new risk profile affect the long-term strategy of the business?
Do the same for the next 10 risks.
Take your review to the leadership team now and engage in conversations about the next steps.
2. Assess your risk appetite statements: do they need to change?
Once you’ve conducted your risk review, consider whether your appetite needs to change.
There will likely be several strategic risks that now sit outside of your current appetite threshold.
But there will likely be trade-offs to consider:
In order to maintain your current risk appetite are you creating barriers to serving customers in this new climate?
Or
Do you need to adjust your appetite and accept more risks – albeit temporarily – in order to adequately serve customers in this new climate?
Backed with your new risk register, these are conversations you must have with leadership now.
3. Think about your post-implementation reviews now
Initiate post implementation reviews (PIR) now.
Begin collecting data from all relevant stakeholders and teams for your first incident review.
PIR is a lengthy process. But you can obtain sign-off from leadership to begin this process earlier by explaining:
- Collecting data for the first review will mean less chance of missing critical detail and nuances
- Collecting data now will ensure there is less delay in obtaining critical information after the fact.
Don’t wait, act now
As one risk manager put it, why wait to take these steps? Where’s the value in that?
There has never been a more important time for true collaboration between risk managers, and the Risk Leadership Network is already working with its Members to transform how they exchange knowledge with peers.
Are you an in-house risk manager who could benefit from access to the knowledge and expertise of a global network of senior risk professionals? Talk to us about becoming a Member today.
