Future-Proofing Risk Management
Is it time to assess your risk management function?
The need for effective risk management has rarely been so urgent. As Boards of Directors, CEOs, and CFOs grapple with the implications of COVID-19 including employee engagement, customer communication, supply chain issues and financial implications the truth remains: threats to the business can come from any direction. These include not only pandemics, terrorist acts or financial disaster, but strategic risks such as the emergence of market disruptors or a failure to predict marketplace shifts. Unfortunately, with our focus on COVID-19 issues, we have become more vulnerable to other risks.
While companies are busy responding to COVID-19 issues, it is also a good time to assess the current risk management process to determine if it is poised to manage business risks in the future. Here are some questions to consider:- How well were we prepared to respond to COVID-19?
- Did our business continuity plan support our operations effectively?
- Have we evaluated our risk appetite considering the current business climate?
- Is our risk management infrastructure and governance optimized for the future?
- Has our ERM process identified our real risks? What about emerging exposures?
- Is our risk management process aligned with our business objectives?
- Are we leveraging our risk business partners properly (brokers, TPA’s, etc.)?
- Is risk managed in silos or is the approach an integrated one?
- Does the strategic planning process include a formal risk evaluation component?
While we need to focus on the implications of COVID-19 it is not too early to step back and consider a review of how we manage risk today. Did our risk management and business continuity functions respond to and handle the COVID-19 crisis effectively?
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Cypress Risk Advisors can assist with this assessment and make sure companies are prepared for the next major risk event. For more information contact Frank Strenk by clicking here