Imagine the post-COVID recovery as a miraculous touchdown pass to win a football game. All the attention goes to the quarterback and the receiver. But away from the ball, there’s a series of blocks that enable the play to succeed. They’re not the flashy party, but they’re essential nonetheless.
In a business context, the blocks represent risk management. After a decade of strong, sustained growth, some companies have grown complacent about risk management. But as they emerge from the pandemic with ambitious plans or new business models (the passing part of the play), the risks are higher than ever, which is why the companies that rebounded fastest relied on business continuity planning services.
Per Forbes.com, “Managing risk is simply another thing that COVID-19 is necessitating. Companies have to develop techniques to quickly identify risk through systematic protocols, organizational culture change and arduous interaction with third-party vendors and employees.” Preventable mistakes have greater consequences, and one wrong step could derail the whole effort. Just as the play requires a blocking strategy to reach the end zone, the pandemic recovery must include a serious effort to manage risk. These are the key components:
Update the Business Continuity Plan
Learn the lesson of the recent past, and with some proactive planning, take a close look at the business continuity plan. Is it still applicable, and can it keep the company running when the next big disruption happens? Are their plans and policies that need to be changed or investments that need to be increased? Robust business continuity plans will be essential through what looks to be a lengthy and unpredictable recovery period.
Review and Expand Insurance Coverage
Identify any gaps that may exist in your insurance coverage. Likewise, consider how your liability may have expanded or evolved in recent months and then seek out additional coverage accordingly. Carrying more coverage than would be normal (or sustainable long-term) may be advisable though the precarious recovery period.
Seek Out Emergency Funding Sources
Depleted cash resources could slow down the recovery effort or bring it to a screeching halt. Begin reserving as much cash as possible without denying funds to necessary or evolutionary investments. At the same time, seek out emergency sources of credit or cash who can extend a lifeline as necessary. Don’t assume you’re financially secure either. Every business needs a financial fallback to weather the recovery.
Address Cybersecurity Concerns
Cyberattacks have increased during the pandemic even faster than they were increasing before. Simultaneously, companies began to depend on digital technologies like Zoom and cloud apps to keep their operations afloat. Address digital risks along with all others, and look for ways to make meaningful improvement to cybersecurity without multiplying the current budget.
Bring Expectations in Line With Reality
Once it’s clear what internal and external threats a company needs to worry about in the near term, compare those insights to the current business strategy. Is the strategy still feasible or does a new understanding of risk reveal it’s a long shot? For risk management to be a meaningful exercise, it needs to inform the broader business strategy.
“No individual or organization can predict specific risks. But organizations can and need to prepare for an uncertain and volatile future that includes climate change, technological disruption, geopolitical risk, threats to the global supply chain, and issues related to cyber-crime, data protection and privacy. As we have seen during the pandemic, some modern business practices (such as globalization and just-in-time inventory management) create risks of their own. And regulatory authorities around the world continue to evolve and expand their scope, addressing matters such as data protection and privacy along with money laundering, financial crime, violations of sanctions, bribery and corruption,” says Forbes.com.
If you need help drawing up a play for the recovery process, rely on business continuity planning services. AcctTwo can help you understand your risk and plan an appropriate blocking scheme as you aim for the end zone.
For more information about navigating the post-COVID recovery process, download this free resource.