Business Continuity and Managing Risk in The Covid-19 Era
Business / Jul 06, 2020
Once the businesses can manage the risk pertaining to Covid-19, business continuity can be ensured automatically. To be able to manage risk in the Covid-19 era, it is essential to identify the various risks associated with it at first.
In a layman’s language, let’s proceed to how you can manage the risk to ensure business continuity without getting your business paralyzed amidst Covid-19.
Identification of The Risks
First things first, managing risk starts with identifying the various types of risks that exists in your organizational structure. The multiple risks are underlined here:
Infrastructure risks
This relates to preparing your organization from within. Here are some of the factors that should be taken care of:
- Check for the services associated with making your employees work from home/remotely.
- Make sure that the workforce can be managed remotely without the presence of IT staff, operations and support, etc. to minimize costs
- Identify the failure points in remote working and be prepared for countermeasures
- To keep supply chains running unintermittingly, define the responsibilities clearly
- Have a robust IT support to not falter the working of remote employees
Employee risks
- Plan substitutability roles in case of absence of onsite employees
- Guide employees and provide them with mental encouragement in case of stressing and emergencies
- Adopt easy methods of assigning duties, distributing responsibilities, easy mobility among employees
Operational risks
- Draft proper measures to counteract the disruption of supply chains
- Find out ways to get work done in the absence of remote employees
- Prepare exigency plans for the revival of closed business operations
- Find out appropriate ways to optimize cost, process, and portfolios in case of a recession
Communication risks
- Free flow of communication is essential among the partners, employees, suppliers, and the public to keep up with any emergency situation
Identification of risks is the first step towards preparedness towards business continuity.
Be Flexible To Changes
Risk is a part of the growing business. Airbnb, which took 12 years to build, lost everything in 6 weeks, its CEO said in a statement. However, their road to revival will be inspiring to see. The second important method to manage risk and ensure business continuity in the Covid-19 era is to be flexible with the changing scenario. Adjust your business workings suited to the changing needs. For instance, this Covid-19 era demands remote working, strong IT infrastructure and adopting such measures to keep your business afloat in difficult times.
This also involves finding out creative solutions to step up further, communicating well with stakeholders and people alike, and be ready to take action out of your comfort zone.
Reach Out To Advisors
Each one of us is specialized in some of the other things. Advisors are one of them. They are the best in their expertise. It’s always good to seek their advice in such situations. The various advisors you can approach for business continuity include:
- Risk management consultants
These consultants can help you in identifying, analyzing, evaluating, and treating your business risks. If your business doesn’t have a business continuity plan, risk management or emergency plans, Risk management consultants can help you out in framing one. Even if you have one but isn’t working out, these consultants can still help you in reviewing, improving and re-enacting your plans.
- Insurance broker
They Provide insights into your current insurance policies, their coverage and their efficacy in improving your business condition.
- Financial advisors
Are your finances getting tight? Finding it difficult to manage them? Financial advisors can help you in finding a way out, suggesting your incentives and financing options like loans, deferrals, government schemes available to you that can be accessed.
- Mental health professionals
This directly focuses on the employees of the organization. Their mental health is important as they constitute the majority of your organization. Providing mental health solutions to them through mental health professionals can help employees in fighting with stressing situations.
Business Continuity Internally and Externally
Business continuity can be ensured by strictly evaluating the impact of the Covid-19 internally and externally. Once you have evaluated the problems that exist internally and externally, it’s easier to work upon them dedicatedly.
- Internal problems
What lies within the organizational boundaries are all covered under internal problems like employees, infrastructure and equipment. A continuity plan should be laid out to identify the problems in each of these functions.
Employees, the human factor should be prioritized. Proper social distancing measures, availability of masks, sanitizers, and other safety measures should be strictly adopted to expose the employees to the virus to the minimum. The less important should be suspended, cash expenditures should be avoided, remote working wherever possible should be implemented. The chain of command, delegation and authority should be clear in assigning duties, responsibility and accountability.
All necessary safety precautions should be implemented in handling equipment and machinery as well. Cost optimization should also be kept in mind while handling internal problems.
- External problems
The biggest external problem to look at is the supply chain management. The supply chain should be looked into by assessing the risks associated with vendors, suppliers, distributors, manufacturers and other supply chain stakeholders. As everyone is facing the same crises, it is good to communicate with your vendors and reach a safe middle negotiating point that will optimize the cost for both.
Another external factor that should be looked at is your customers. Make sure to communicate well with them. Provide a real-time update to the customers and stakeholders to keep them assured of their returns and invested money.
Adoption of Technology
Another saviour that have turned out to be a part of business continuity is technology. However, it does come with its own risks as well. Adapting to technological advancements is a new normal. From remote working, automation to working on digital presence, IT infrastructure can help your business a lot in surviving in a critical situation.
However, this should be done with ultimate security and protection. As it comes with risks by cyber-attacks, phishing that could lead to a great loss of data and information. Invest well in information programs that help in leveraging your business to a new high.
So, this was all about how you can ensure business continuity and manage risk in the Covid-19 era. Basically, all that needs to be done is to identify the risks and treat them well.
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