COVID-19: A perspective on risk management

COVID-19: A perspective on risk management

  • Katie Henry , Senior Manager |

“We’ve become sophisticated at identifying our internal risks and managing them and mitigating them, but actually it’s often our external risks that hit us the hardest.” 

In our latest video on the New Reality, I discuss the challenges facing enterprise risk management. One of the big challenges businesses are facing is that their risk management processes often don’t give them enough forewarning about the risks coming their way to be able to tackle them effectively.

There are three main reasons for this that businesses need to recognise and address:

  • We’ve become sophisticated at identifying internal risks, but it’s external risks that have the biggest impact on businesses.
  • Everything is increasingly interconnected. If businesses assess risks as a single point of failure, rather than as a whole or a chain, they will underestimate the likely impact.
  • It’s important to understand time-to-impact of risks, so businesses can ensure they have a disaster recovery plan that’s ready to be implemented as soon as it is needed.

What businesses should consider now is performing a detailed risk assessment, including as much breadth and experience as possible. This should include all members of the organisation to identify all internal and external risks, the severity and likelihood of them, and how best to address them.

Find out more about how to mitigate risks within your business with the on-demand recording of our webinar ‘Returning to work: Enterprise risk – controls, cyber, fraud and privacy’.