{"id":10672,"date":"2020-08-05T03:50:00","date_gmt":"2020-08-05T03:50:00","guid":{"rendered":"https:\/\/camms.bubblestaging.com\/?p=10672"},"modified":"2023-09-11T10:31:09","modified_gmt":"2023-09-11T10:31:09","slug":"managing-global-risks-locally-in-2020","status":"publish","type":"post","link":"https:\/\/camms.bubblestaging.com\/en_gb\/blog\/managing-global-risks-locally-in-2020\/","title":{"rendered":"Managing global risks locally in 2020"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"10672\" class=\"elementor elementor-10672\">\n\t\t\t\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-469eaff elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"469eaff\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8070c3e\" data-id=\"8070c3e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-32c5dc3 elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"32c5dc3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.14.0 - 26-06-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>The impact of the massive global disruption from the COVID-19 pandemic during 2020 has been felt in virtually every organizsation, workplace, and household around the world. With or without an effective vaccine, the pandemic\u2019s far reaching impacts will be felt globally for some time to come.\u00a0<\/p><h3>Global risks in 2020<\/h3><p><img decoding=\"async\" src=\"https:\/\/f.hubspotusercontent00.net\/hubfs\/4827807\/link-hood.png\" alt=\"link-hood\" \/><\/p><p><i>WEF &#8211; Global Risks Report 2020<\/i>\u00a0<br \/>\u00a0<\/p><p><span style=\"font-style: inherit; font-weight: inherit; background-color: var(--ast-global-color-5);\">The\u00a0World Economic Forum (WEF) released its\u00a0<\/span><i style=\"font-weight: inherit; background-color: var(--ast-global-color-5);\">Global Risks Report 2020<\/i><span style=\"font-style: inherit; font-weight: inherit; background-color: var(--ast-global-color-5);\"> on January 2020. Infectious diseases only just made it to the Top 10 Global Risks list for impact, but not likelihood. This is understandable given that it was based on surveys of the WEF\u2019s multi-stakeholder communities conducted from September to October 2019.\u00a0\u00a0<\/span><\/p><p>The\u00a0societal and economic\u00a0consequences of the COVID-19 pandemic have been rapid\u00a0and immense.\u00a0<\/p><p>Governments and organisations are still working on the immediate and difficult balancing act of stabilising and reinvigorating businesses and economies while protecting and supporting people.\u00a0<\/p><p>What is\u00a0evident\u00a0from the\u00a0WEF\u2019s\u00a0<i>Global Risks Report 2020<\/i>, is that although the pandemic has moved front and centre of the global risk agenda, the other Top 10 global risks are still there. They haven\u2019t reduced in either likelihood or consequence. Some, like cyber attacks appear to have further escalated during this period.\u00a0<\/p><h3>The global impact of COVID-19<\/h3><p>A\u00a0May 2020\u00a0report\u00a0by the WEF\u00a0based on the analysis of evidence and trends, together with\u00a0the perceptions of 350 of the world\u2019s top risk professionals,\u00a0mapped out the top 10 most likely\u00a0global impacts from the pandemic.\u00a0<\/p><p><img decoding=\"async\" src=\"https:\/\/f.hubspotusercontent00.net\/hubfs\/4827807\/pic%202.png\" alt=\"pic 2\" \/><\/p><p><i>WEF &#8211; Global Risks Report 2020<\/i>\u00a0<\/p><p>Predictably, economic risks were identified as the most challenging fallout from the pandemic. The World Bank has recently forecast a 5.2% contraction in global GDP in 2020.\u00a0\u00a0A prolonged global recession tops the list of the major risks arising from the pandemic.\u00a0An increase in indebtedness will push some companies into bankruptcy and there will be failure of some industries or sectors to fully recover, which in turn will trigger consolidation within industries. We are already seeing high levels of unemployment across many sectors of the economy, which will affect consumer confidence and the speed of economic recovery.\u00a0<\/p><p>As well, restrictions on cross-border movement of people and goods and on-going disruption to global supply chains will further\u00a0weaken the economic recovery.\u00a0<\/p><p>The other risk concerns in the Top 10 are the escalation of cyber attacks and data fraud associated with changes in working patterns and the threat of another significant resurgence of COVID-19 or other infectious diseases.\u00a0<\/p><h3>Global to local \u2013 Managing the major risks in your organisation<\/h3><p>In combination,\u00a0the pre-COVID-19 pandemic risks and those that have emerged during the pandemic have\u00a0impacted\u00a0every sector of\u00a0global\u00a0economies.\u00a0<\/p><p>The following analysis identifies the local organisational impact of these major global risks and how to apply the learnings to-date.\u00a0\u00a0\u00a0<\/p><h3>The local impact of COVID-19<\/h3><p>Before the COVID-19 outbreak, pandemics were not a standout risk\u00a0consideration\u00a0in\u00a0many\u00a0corporate risk registers. They were often\u00a0cited as\u00a0one of several causes (also including natural disasters, terrorist attacks etc.) listed under\u00a0a\u00a0risk such\u00a0as\u00a0\u201cMajor disruption to operations\u00a0(or services)\u201d. Though the collective consequence\u00a0would usually be rated\u00a0major or catastrophic,\u00a0the likelihood would often be rated unlikely or rare. Depending on\u00a0the type of business and respective\u00a0risk impact matrix, this could drop it from an extreme impact (with a possible likelihood rating)\u00a0to\u00a0a\u00a0high or even medium\u00a0impact.\u00a0<\/p><p>What also appeared to be under estimated by many organisations was the scale and duration of the disruption to operations and services caused by the pandemic. This was reflected in many business continuity plans, with a focus on core business functions relying on conventional controls.\u00a0\u00a0\u00a0<\/p><p>Recent consultation with senior risk managers and CEOs by the global research and advisory company\u00a0Gartner,\u00a0identified a number of new, pandemic\u00a0related\u00a0risk\u00a0concerns\u00a0across industry sectors, in particular:\u00a0<\/p><ul><li>Facility closures due to positive COVID-19 cases\u00a0<\/li><li>Staff shortages due to cases of COVID-19\u00a0<\/li><li>Employee mental health and well-being\u00a0<\/li><li>Regulations limiting or suspending industry-specific business operations\u00a0<\/li><li>Supply chain disruption as a result of\u00a0<i>force majeure<\/i>\u00a0clauses \u00a0<\/li><\/ul><p>As a result, these risk\u00a0factors\u00a0were not part of pre-pandemic risk\u00a0identification and\u00a0assessments. As well,\u00a0the\u00a0scale and\u00a0prolonged nature of business disruption\u00a0or in some cases complete shutdown, together with\u00a0facility closures may have seen business continuity plans fall short.\u00a0<\/p><p>The\u00a0pandemic\u00a0has\u00a0also\u00a0amplified some\u00a0existing enterprise risks and\/or\u00a0accelerated\u00a0their onset.\u00a0\u00a0<\/p><p>The Gartner research consolidates these COVID-19 related risk\u00a0factors into\u00a05\u00a0key, interrelated\u00a0areas:\u00a0<\/p><ol><li><i><strong>Employee health and safety.\u00a0<\/strong><\/i>In addition to protecting employees from COVID-19 infection,\u00a0engagement and mental well-being are higher in urgency.\u00a0<\/li><li><i><strong>Business continuity and productivity.<\/strong>\u00a0<\/i>COVID-19 has magnified risks in workforce availability, absenteeism and a lack of key vendor-provided\u00a0services, which\u00a0can threaten business continuity plans.<\/li><li><i><strong>Financial. <\/strong><\/i>Fluctuations in customer demand, third-party risks, and a global economic downturn pose significant financial risks to organisations across industries.<\/li><li><i><strong>Information security<\/strong>.\u00a0<\/i>Transitions to long-term remote work can increase risks of privacy and data breaches, phishing\u00a0scams, and inability for infrastructure to support extensive use of remote VPN connections.<\/li><li><i><strong>Regulatory compliance<\/strong>.\u00a0<\/i>New or altered government regulations, public health policies and compliance requirements can\u00a0affect\u00a0all aspects of business operations. \u00a0<\/li><\/ol><p>Organisational resilience and sustainability requires that each of these areas are prioritised and appropriately resourced, not only operationally from a risk management and compliance perspective, but also strategically from a Board and Executive perspective. Identifying, tracking and reporting on key metrics associated with these areas can play an important role in supporting well informed and timely decision making.\u00a0<\/p><p>If it\u00a0hasn\u2019t\u00a0been done already, now is\u00a0also\u00a0the time to update risk\u00a0and compliance\u00a0registers and respective risk assessments with the new COVID-19 driven risk factors and review and update business continuity plans on the basis of the experience with major business disruption.\u00a0<\/p><h3>The local impact of climate change<\/h3><p>Of the pre-pandemic global risks identified by the WEF in the\u00a0<i>Global Risks Report 2020<\/i>, those related to climate change have the ability to continue to significantly impact organisations at the local level.\u00a0\u00a0\u00a0<\/p><p>It is worth remembering that in September 2019, rallies timed to coincide with the United Nations Climate Summit\u00a0in New York\u00a0saw an estimated\u00a0six million people in more than 180\u00a0countries take to the streets demanding more action by governments\u00a0and industries\u00a0to cut greenhouse emissions.\u00a0<\/p><p>Individual companies have\u00a0also\u00a0been held\u00a0increasingly\u00a0accountable\u00a0by customers, investors, competitors and regulators\u00a0for their impact on the environment\u00a0and contribution to climate change.\u00a0<\/p><p>In the wake of COVID-19, regulators and central banks will be keen to avoid further significant financial stress on businesses in the transition to a low carbon economy, but while this may slow the process, it will continue. A slowing of this transition may of course increase the existential risk of climate change.\u00a0<\/p><p>With pandemic driven changes to working practices, attitudes to travelling, commuting and consumption, there may also be opportunities for some businesses to capitalise on a lower carbon recovery.\u00a0<\/p><p>Organizations will also have to contend with a continuation of extreme weather events, which have the potential to further impact supply chains, infrastructure and affect consumer demand.\u00a0<\/p><p>As with organisational planning and preparation for future pandemics, scenario and vulnerability assessments can be run to better prepare for climate change risks.\u00a0<\/p><h3>Applying the learnings<\/h3><p>We are in a\u00a0global\u00a0healthcare crisis that is also a\u00a0global\u00a0economic crisis\u00a0with a backdrop of a climate change crisis.\u00a0\u00a0\u00a0<\/p><p>The learnings to-date from the COVID-19 pandemic in terms of dealing with a large-scale crises and its consequent disruption, whether it be through failure of global supply chains or infrastructure, or failure of processes, systems and plans within the organisation, has a cross-over application to the significant risks brought about by global climate change.\u00a0<\/p><p>The fallout from the COVID-19 pandemic is still unfolding. As indeed is the impact of climate change. Although there are a number of commentators talking about the \u2018new normal\u2019 or the \u2018next normal\u2019, seemingly with some clarity,\u00a0I think that has yet to be determined.\u00a0<\/p><p>In the meantime, the learnings to-date can be incorporated in planning and aligning resources for a better prepared, more resilient and sustainable organisation, that is also better positioned to capitalise on emerging opportunities. That is essentially, good risk management.\u00a0<\/p><p>Redefine the way your organisation pursues opportunity and manages risk. Get started today with a flexible, easy to use integrated risk management solution in less than 4 weeks. <a href=\"https:\/\/cammsgroup.com\/products\/risk\/\">Request a demo.<\/a><br \/>\u00a0<\/p><p><a href=\"https:\/\/www.weforum.org\/reports\/the-global-risks-report-2020\"><i>Source: World Economic Forum Global Risks Report 2020<\/i><\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>The impact of the massive global disruption from the COVID-19 pandemic during 2020 has been felt in virtually every organizsation, workplace, and household around the world. With or without an effective vaccine, the pandemic\u2019s far reaching impacts will be felt globally for some time to come. Global risks in 2020 WEF &#8211; Global Risks Report &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/camms.bubblestaging.com\/en_gb\/blog\/managing-global-risks-locally-in-2020\/\"> <span class=\"screen-reader-text\">Managing global risks locally in 2020<\/span> Read More &raquo;<\/a><\/p>","protected":false},"author":3,"featured_media":10673,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"categories":[21,22],"tags":[],"class_list":["post-10672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-resilience","category-risk"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.2 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Managing global risks locally in 2020 | Camms<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Managing global risks locally in 2020\" \/>\n<meta property=\"og:description\" content=\"The impact of the massive global disruption from the COVID-19 pandemic during 2020 has been felt in virtually every organizsation, workplace, and household around the world. 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Global risks in 2020 WEF &#8211; Global Risks Report &hellip; Managing global risks locally in 2020 Read More &raquo;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/camms.bubblestaging.com\/en_gb\/blog\/managing-global-risks-locally-in-2020\/\" \/>\n<meta property=\"og:site_name\" content=\"Camms\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Cammsgroup\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-05T03:50:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-11T10:31:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/camms.bubblestaging.com\/wp-content\/uploads\/2023\/08\/ESG-blog-linkedin-post-3.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"camms\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" 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