COVID-19 AND RISK MANAGEMENT
Global developments brought about by the COVID-19 crisis are creating extraordinary disruption and uncertainty on a global, political, business and humanitarian level. The pandemic has required corporate leaders to address myriad governance, risk and compliance issues.
In recent years, the role of the risk function has evolved significantly, most notably since the 2008-09 global financial crisis, as companies have been forced to adapt to shifting regulatory expectations and requirements. The COVID-19 pandemic is likely to usher in another, transformative wave of changes.
As the working world adapts to the ‘new normal’, chief risk officers (CROs) have found themselves on the front line, working with other executives and the board to address the many challenges faced by companies and their employees. Companies are likely to lean heavily on their CROs in light of the new and heightened dangers engendered by the COVID-19 era.
The scope of the CRO remit has expanded in recent months. Confronted by new operational issues, certain aspects of the business are now on their radar. For example, social distancing measures and shelter in place orders led to a huge jump in the number of employees working remotely, raising cyber security and data protection concerns to an even higher level.
Existing technology systems have been stretched by the COVID-19 outbreak, with additional strain on IT infrastructure as more people are forced to work remotely. There are both opportunities and risks involved with remote working. While it may provide a better work/life balance for some, and has been found to increase productivity, time management and quality of work, it also raises concerns over cyber and data security.
Oct-Dec 2020 Issue
Richard Summerfield