The functional role of risk management has become amplified during the COVID-19 world pandemic. The crisis has not only affected the health of people, it also has had a significant impact on society and the global economy.
As companies of all sizes and industries establish remote working capabilities and other operational protocols to navigate through this crisis, Risk managers are now front and center in addressing current and future risks. Depending on the size and structure of the organization, executives are leaning heavily on their internal risk management function to advise and implement current and future policies and protocols should another event of this magnitude present itself.
Historically, the risk management function has frequently had a challenge in establishing its value within certain organizations. At times, becoming more of an ancillary service to the overall operation and growth strategy. With the existence of COVID-19, things have changed. Companies are now looking at risk management to help them overcome the current COVID-19 crisis and prevent or reduce the impact of future events.
Risk Managers are now front and center in addressing current and future risks.
Experienced risk management professionals view these unprecedented times as an opportunity to establish their value, relevancy, and expertise to strengthen the organization from an enterprise risk perspective. Risk management will be required to ensure appropriate actions are taken to mitigate the impact of disruptions by developing and implementing enhanced risk management practices. These new challenges require a new set of capabilities and skills sets proactive risk managers will need to improve upon or develop.
By constantly identifying, prioritizing, managing and responding to multiple risks companies can ensure their future. A solid risk management approach also helps companies safeguard the wellbeing of their people, clients and other stakeholders. It’s therefore key to have the right organization, people and processes in place.
Overall, we are seeing a significant shift in the role of risk management, from an ancillary service to a strategic business partner.