Seven Critical Lessons CEOs Are Learning In The Crisis
How companies respond could make or break their long-term resilience
Though devastating, the COVID-19 pandemic is a surprisingly useful lever for improving a company’s resilience in the face not only of infectious disease, but also of other more common shocks, including cyberattacks, floods, fires, hurricanes, earthquakes, economic downturns and climate change.
For CEOs, the deadly coronavirus has instilled valuable lessons in risk management and continuity planning. Let me share seven that I’ve learned:
1. Focus on supply chains. As we’re witnessing, unexpected events can knock out operations in large geographical swaths, dealing tremendous blows to companies that lack a plan B, whether it’s having backup facilities, alternative suppliers or big inventories. Where you’re doing business matters: Although a pandemic knows no geographic boundaries, certain countries have more resilient business environments than others, foretelling which regions may be best positioned for rebounding faster as the pandemic wanes. FM Global ranks nearly 130 countries by the resilience of their business environments, overall and separately, according to 12 resilience measures like inherent cyber risk, natural hazard risk, economic productivity, supply chain visibility and control of corruption. Consider geographical resilience as a factor in your pandemic recovery strategy as you decide where to site facilities, build supply chain redundancy and cultivate markets.
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