Page 84 - Focus Group

ENTERPRISE RISK

MANAGEMENT IN PANDEMIC

With COVID-19, Year 2020 started with lots of has a risk plan, a business continuity plan, and a
volatility which was unprecedented. Country wide crisis plan – and how each plan will evolve, while
restrictions, supply chain disturbance, lockdown, also seeking employee engagement and their input.
restriction on international travel, lowest interest
rates, negative oil prices made risk management Consider business continuity- In business
take center stage. The following principles will continuity planning - one should prioritize critical
help enterprises in establishing risk management business activities, stabilize cash flow, extend
system: financial resources to remain operational and
maintain business reputation. Business continuity
Know your risk- Risk management is defined as plan include four steps- prevention, preparedness,
“predict the unpredictable.” To navigate the risks response and recovery.
(and opportunities) associated with the pandemic,
it is critical to first identify what are those risks. An Consult with Experts- Take advise from risk
enterprise should consider all kinds of risks like management experts in identifying, analyzing,
operational, strategic, financial and reputational evaluating and treating business risks. If
and collect information from large cross-section organization do not have a business continuity,
of internal and external stakeholders (employees, incident management, risk management or crisis
clients, vendors etc.). plan, it is never too late to seek advice to review,
improve, create or implement.
Be adaptive- Albert Einstein said “learn from
yesterday, live for today, hope for tomorrow. The Enterprise Risk Management (ERM) works because
important thing is not to stop questioning.” The it fosters and relies upon a holistic approach to
world is navigating towards a new normal. The identifying, analyzing, evaluating and treating risks.
plans that businesses had during first quarter While it needs to be fully endorsed and supported
are no longer appropriate, feasible or realistic for by top management, it must involve the entire
today. Navigate this period with flexibility and organization in order to succeed.
understanding.

Read people -Every organization’s success lies
in its people. The organizational risks associated
with mismanaging its employees in this time
can be significant (health and safety, financial,
reputational, legal, operational etc.). For managing
this risk, enterprises should devote the time to
communicate with employees that the enterprise
CA Rashmi Kedia
Disclaimer:
This article and/or write ups and/or any of its content shall not be treated as opinion and/or advice in any circumstances of the author(s) and/ or the Chapter. Reader’s to apply their best
judgement in the best interest of their requirement and should seek a formal opinion on any issue.

84 TAX JOURNAL 2020 The Institute of Chartered Accountants of India (Dubai) Chapter NPIO