18 Dec 2020 Ankit Chadha

Risk Management During The COVID Era: Here’s Your Checklist To Recovery

Risk Management Process | TRC Corporate Consulting

Both the fight to avoid the spread of COVID-19 (coronavirus) to the population and minimize its economic impacts continues to consume business leaders’ attention. Indeed, the very essence of this pandemic requires intense resilience and imagination from administrators, being a fluid, constant emergency vs. a one-time occurrence. However, when they discuss the prospect of workers working from home and the effects on supply chains, they are spending precious time preparing for their project risk management recovery.

While companies are currently in the response risk management process, planning for the recovery phase is not too early to start. As the situation continues to grow and business continuity strategies, risk management processes, and risk controls specific to prevention and response are gradually being deployed, business leaders must focus on how they can return to full capacity.

The recent Organizational Risk Management survey conducted by DuPont Sustainable Solutions found that executives prioritize immediate crisis management response and fail to plan for long-term recovery. Although 70 percent of business leaders are optimistic that their business disruption strategy and risk management process will shield them from the direct consequences of a major event, 25 percent are uncertain of its consistency, and 33 percent admit that there is a risk that a single point of failure could cause the entire plan to crash. This shows us that businesses are not adequately prepared for the consequences of the latest pandemic.

This lack of preparedness in project risk management can predict their death as per the United States Federal Emergency Management Agency, more than 40 percent of companies have never re-opened after a disaster, and for those who do, only 29 percent have remained in service after two years.

Taking Care Of Your People 

People are the most valuable resource for any operation; hence, they should be the first priority. During the response risk management process, organizations should develop a robust and regular contact channel for all workers, including a tracking system to understand whether employees or their families have been infected or affected by the virus.

Find remote or partly remote working conditions with a portion of workers working in the workplace and the remainder working from home. Businesses must be attentive to the families of workers and their safety as well as wellbeing. Be vigilant and offer regular guidance to families about how best to continue protecting themselves at home and in public to avoid recontamination. Many people get their health news from social media, an environment that is very vulnerable to gossip and misinformation. No employee can work properly if they are afraid of their families. Establish a risk management process to ensure that workers are safe before returning to the workplace while preparing for the recovery process. And when they return, they have a clean, sanitary work environment. Both workstations and appliances should be disinfected to ensure that further transmission is not necessary.

Establishing A Governance System 

One of the first goals for the risk management process’s recovery planning is to provide a transparent governance model that prioritizes rapid decision-making. This is especially important for larger, more hierarchical organizations with a wealth of processes. The Executive Recovery Committee (ERC) should be formed for the company, which falls under the control of regional and local organizing committees.

The authority to decide things at the local level relating to staff and operational assets should be granted to each as appropriate. Be patient for a staggering recovery with effective risk controls by identifying the types of risks management suitable for a business and then implementing appropriate risk management processes. It will certainly take time to get back to full operations; that suggests you need to prepare to get people and operations back on track, organized, and structured. Game different situations and roadblocks to help you plan.

Formulate A Pragmatic View Of Supply Chain Disruptions And Customer Effects

The pandemic has caused havoc on the supply chains of several businesses. Hyundai halted production in South Korea due to a shortage of parts made in China, but that was before the coronavirus reached the country itself. Like Apple, which receives about a quarter of its operating profits in China, it temporarily shuts down its stores and assembly plants. It faces supply chain problems as 290 of its 800 suppliers are located in China.

As more businesses take steps to curb the community’s spread, supply shortages will become more severe and far-reaching. As such, businesses need to get a realistic image of the risk management process’s inputs they can expect from current suppliers and what can be purchased elsewhere to deliver based on production goals. This a common project risk management process and risk controls that enable companies are confident about their ability to produce but attempts to get a reasonable image will be essential.

At the same time, businesses must also provide their consumers with reasonable projections based on effective risk management process analysis and not over-promises. Commonly, businesses want to convince their clients, but they are distrustful of promising breeds. There could be staff shortages, whether the staff is either under quarantine or recovering from any sickness or family problems related to the disease.

Re-evaluate Operational Risks And Asset Integrity 

There are inherent risks to start-up during any unexpected shutdown; in particular, process safety accidents are five times more likely to occur during start-up functions than during regular operations. To minimize such risks, a full re-start review of all essential risk controls and risk identification should be performed to ensure the security of all assets and processes before re-start. Policies and processes should also be revised and thoroughly reported.

Any of the properties were unlikely to be maintained as planned, so they should be thoroughly tested in compliance with all lockout/Tagout functions of the risk management processes and any maintenance work performed prior to start-up. Control processes that have been digitized must also be checked. Finally, a thorough safety review of the loan should be done.

Our Practices That Ensure a Successful Compliance Risk Management 

Many elements help you achieve a successful compliance risk management process, such as:

  • You must get inputs from compliance project risk management and risk controls specialists as well as the other people in your organization. They understand the functionality of the business and therefore understand the risks better.
  • The different risk domains must be specified, with the owners taking responsibility for their actions. This allotment will ensure effective management and transparency.
  • The remedial assessment actions should be understood across all the applicable departments for the proper allocation of resources.
  • A check on data and statistics frequently will enable a better understanding of the existing risks.

At TRC Corporate Consulting, we offer you services to plan inclusive, comprehensive project risk management plans. Our credible team ensures that you get all the information and assistance to formulate and execute successful risk mitigation strategies. With a base of satisfied clients globally, we aim to challenge the conventional project risk management process and provide the best in class service to formulate all your business’s risk controls. For an understanding of our services, get in touch with our team.