As companies begin to restart operations, risk managers must prepare plans to ensure a smooth transition across their organization. The last thing anyone wants is a major property or business interruption, and risk management practices have to be adjusted to mitigate potential disruptions in a post-#COVID19 world.
Companies who have invested heavily in risk management capabilities, including recruiting senior risk management roles and regularly using risktech/insurtech tools, are best poised to rebuild quickly on stronger foundations. If your company hasn’t, “It’s not too late for other business leaders to follow suit, and start building the resilient organizations of the future.”
Many of the world’s top investors, asset managers, and risk experts are focusing their resources on assessing climate risk and its impact on the businesses they invest in; it’s all in the data.
During this pandemic, business leaders need to draw upon their EQ as much as their IQ to guide their teams and companies with confidence. It’s easy to get lost in the chaos, but the true test of leadership is finding tranquility in turmoil.
Companies will need to prepare for a “major rethink… in how they organize their supply chains” in a post-COVID19 world, and risk managers will be crucial in leading and supporting their companies as they reflect and restructure how their global supply chains operate.
An important reminder that climate risks are projected to worsen in the coming months even as much of our attention is on the coronavirus pandemic. While businesses are just beginning to understand and manage their response to COVID-19, it’s imperative to develop deeper risk management strategies for severe weather events concurring with pandemic response.
Building supply chain risk resilience begins with greater visibility throughout the chain, and as companies continue to digitize their records, those who start developing better practices early will be better poised to withstand serious disruptions.
Historical loss records alone are not adequate in assessing climate risk, according to Swiss Re. As the losses due to weather events continue to increase, “insurers need to adapt to a dynamic risk landscape by closely monitoring and incorporating socio-economic developments, the latest scientific research on climate change effects, and the status of local risk mitigation measures in their modeling.”
When considering insurtech for your company, it’s important to look for both insurance AND tech expertise. Brokers, risk managers, and underwriters have unique needs, and the tech you depend on must understand your work in order to effectively improve business processes.
Risk managers and insurance professionals need to prepare for a greater number of thunderstorms, tornadoes, and hurricanes this summer and fall. Especially as businesses adapt to a post-COVID19 world, it is critical to thoroughly re-examine risk strategies and continuity plans to weather the storms.