There's a lot still to learn about COVID-19 and pandemics. Potential economic scenarios are emerging such as a quick recovery, a global slowdown, or a pandemic-driven recession.
Each scenario needs to be understood and monitored by businesses. Systemic weaknesses identified so far include:
- Poor resilience within both the deeply interconnected and independent ecosystems across the globe, resulting in systems failures across supply chain and other critical activities
- Competitive pressures resulting in over-optimisation of resources such that there is precious little contingency in inventories, supply chains and organisations generally
- Lack of organisational agility to respond to crisis
- Poor quality continuity and contingency planning across many businesses
- Suboptimal risk management processes
There is a clear recognition of the importance and urgency in addressing the COVID-19 emergency:
- There has been a sea-change in attitude amongst businesses in response to COVID-19
- Firms will be expected to develop and maintain an appropriate approach to disclosure of COVID-19 risks and responses
- Critical is a firm’s management action plan on how to mitigate COVID-19 disruption and risks
- Firms must keep abreast of the evolving understanding of what best practice looks like, as the sophistication of firms' approaches deepens, and policy requirements are strengthened
Firms must focus on:
- Understanding current regulatory, policy and legal requirements; changes in consumer, business customer and supplier behaviours; investor pressures
- Managing Risk (reputational, financial, market, supplier, customer, legal, regulatory, etc.)
- Stress testing COVID-19 impact scenarios
- Highlighting COVID-19 response challenges
- Creating a robust response programme
Choices include: Combining publicly available data and network analytics algorithms to seek to illuminate possible vulnerabilities facing the organisation over a period of time, or crowdsource front line information infused with trusted third-party data sources to get more immediate results.
Using Agile Risk Management (ARM) practices SoluxR delivers results at scale, in less time, at less cost, more effectively and more reliably than other methods.
Immediate results begin to emerge when practical issues are addressed for example:
- Getting visibility of disaster preparedness/BCP plans of suppliers
- Resolving bandwidth challenges when seeking continuous supplier engagement
- Multiple scattered projects/efforts seeking to understand supplier risk exposure with low/no prospect of getting a single unifying/ holistic view????
- Identifying/Securing alternative options for supplies
- Identifying Strategic and bottleneck suppliers for the purpose of supplier risk-based assessment
- More extensive/in-depth risk assessment of critical geographically dispersed suppliers
Dynamic links are distributed across the organisation, and its associated ecosystem of suppliers to:
- Initially map and scope the risk landscape. The more links that are shared across the front line decision-makers the more automated assessments are undertaken. And, the more complete the enterprise-wide picture of risks associated with supply chain impacts
- Thereafter undertake deep supply chain risk analysis,
- Leading to enterprise-wide cadenced assessments, across supply chain issues and opportunities as, and when, they arise