Risk management after COVID-19

Humankind is facing a global crisis. The coronavirus outbreak is undoubtedlythe largest crisis after the second world war, affecting hundreds of thousands ofpeople and having a growing impact on global economy. FULLCOVER wanted toknow the opinion of the members of the Brokerslink Risk ManagementPractice about this risk, many times mentioned but never taken seriously –until now.

Risk management after COVID-19

One statement that Risk Managers hear quite often these days is that the COVID-19 pandemic is, after all, an unexpected event and therefore one on which we did not provide enough warning to our companies or our clients. However, recent history tells us that this is not true. So far, the first score of the 21st century has had three regional epidemics such as SARS (2003), Swine Flu (2009), and MERS (2012). 

Additionally, pandemic risk was among those most frequently highlighted in the last ten years by the Global Risk Report of the World Economic Forum (WEF) Global Risks Report, and consistently ranked among the 5 most impactful risks in the WEF report. It can however be observed that over time it has fallen in the probability scale, while remaining indicated with a high impact. This shows that, despite warning signals, the perception was no longer adequate and more recently the focus has shifted towards new risks, such as cyber risks, without putting enough emphasis on the fact that most corporate risk management system are not adequately prepared to be resilient to an event like the current COVID-19 crisis. 

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