Beyond the Pandemic: How to Build Resilience for 3 Key Business Risks
Being resilient means bouncing back quickly from adversity. Traditionally, insurance has been a cornerstone of economic resilience. When businesses suffer losses, insurance policies kick in to recoup them, restoring organizations to their original state.
But most risk managers know that achieving true resilience is not that simple. Relying on insurance to return your organization to its pre-loss state is a reactive strategy that takes coverage for granted.
If this year has taught us anything, it’s that being caught off guard can have financial impact on organizations beyond what insurance can cover.
Insurance cannot, for example, claw back market share lost while a company works to recover from devastating flood damage, restore shareholder confidence after a cyber attack, or regain customer loyalty after a sustained period of business interruption.
“True resilience requires looking ahead, mapping risks as they emerge and evolve, and proactively building (and practicing) response plans so the company is ready for the unexpected. Fast and full recovery always favors the prepared,” said Carmelina Borsellino, vice president and chief engineer, FM Global.
While it’s easy to become distracted by the COVID-19 pandemic, it’s important to prioritize risk mitigation for all business risks — they will still be here when the pandemic is over.
Here are some of the key business risks to keep on risk managers’ radars and how to shift focus beyond recovery toward long-term resilience.
To learn more about FM Global, please visit their website.