The Year in Risk
I am not really sure how to tackle this year’s “Year in Risk” article. 2020 was a year for the ages. A global pandemic turned the world on its head. The global economy contracted almost instantly. Supply chains came under incredible strain. In supermarkets, toilet paper and other household items flew off the shelves. The Hospitality industry was decimated. Ancillary suppliers were affected as well. The mental health industry and acute respiratory centers became overwhelmed. Elective surgeries were postponed. We all have been affected by it.
Workforce risk was considerable. American workers had to respond to new working conditions. Many abandoned their automobiles for slippers and bathrobes as their commutes went from a few hours to a few steps. It has been reported that productivity has increased as the average worker is working longer hours. My guess is it is due to the lack of commute and proximity to their computers and workspaces. For those essential workers, navigating a highly contagious disease like COVID-19 has been challenging. Limiting exposure to individuals and being ever so mindful of surfaces has added another dimension to their job descriptions.
Concerns for how organizations could keep their employees and customers safe, required new strategies. Finding new customers and suppliers became commonplace. The term “the agile leader” took on a whole new meaning. CEO, Executive Coach, Advisor and Best-Selling Author Chuck Mollor authored “The Rise of the Agile Leader, can you make the shift.” He does a great job of explaining and mapping out how leaders must be agile to navigate changes and achieve success.
I took some time during Q2 to work on my professional development. I completed several executive coaching & mindfulness courses. I also became a Predictive Index Certified Talent Optimization Leader. This certification has helped me better understand the workforce risk my clients face and I am now able to offer them engagement strategies that will help them remain focused on their mission.
The pandemic essentially forced leaders to adapt and deal with significant changes overnight. Those who can adapt have positioned their organizations to handle such crisis. A key component to enterprise risk management is to assess and adapt to changing conditions.
Cut in revenues caused wide-spread layoffs. Organizations were forced to work more efficiently as worker’s job descriptions and responsibilities changed. Teams had to find ways to keep morale stable while the drum of uncertainty was being reported constantly by various news media.
Business risk was felt all around the globe as well. Supply chains became interrupted. In some cases, factories producing goods had to halt production as their workforce became ill and or were limited by social distancing protocols. This had a profound impact on the global supply chain.
Strategic risk was prevalent as many organization’s markets disappeared over night. Sales & revenue forecasts were revised. Stock values of companies changed. C-suite executives came under fire for how they and their organization responded to the crisis.
Traditional hazard risks remained in play. Mother nature did not care that a global pandemic was occurring. Wildfires, hurricanes, civil protests, riots, and race issues affected the nation. Political leaders placed limits on congregating and other restrictions. It raised questions about whether government decrees around the pandemic could be viewed as “civil authority” under insurance policies.
We saw individuals and organizations step up and deal with the many challenges COVID-19 presented. Manufacturers retrofitted machinery and began mass production of personal protective equipment. Banks like Enterprise Bank led the charge in offering PPP loans to small business to help them whether the financial storm.
Cyber theft and related system compromises increased from 2019. I, along with many other Massachusetts residents, were affected by cyber-crime as my identity was stolen to collect unemployment benefits from the Commonwealth.
As I complete this, it has been reported that the Energy Department and National Nuclear Security Administration, which maintains the U.S. nuclear weapons stockpile, have evidence that hackers accessed their networks as part of an extensive espionage operation that has affected at least half a dozen federal agencies.
2020 was certainly a year to remember. I suspect future generations will ask what it was like to live through it. I hope to be able to tell my grandchildren that it was the best and worst of times. Resilience took on new meaning. Collectively we rose to the occasion and worked together to overcome the many challenges COVID-19 presented. Stories of untold heroism abound. German philosopher Friedrich Nietzsche was credited with saying “That which does not kill us makes us stronger.” 2020 has proven this to be true.
Dave Schofield
