COVID-19 Sting: Now Is the Time to Turn Risk into an Opportunity for your Business

With the coronavirus forcing businesses to close their doors as governments around the world move to either ban or limit social contact, business owners are left to worry about how to keep the businesses afloat amid the negative financial and social impact of the health crisis.

According to the Kenya Private Sector Alliance (KEPSA), businesses that rely heavily on imports, arts, entertainment, and recreation, ICT, Manufacturing, tourism, mining, and quarrying are the worst hit. It is even worse as it is not clear how long the coronavirus pandemic will last and when it will end.

Despite the Kenyan government issuing directives to cushion the economy, it is not clear what the local and national governments will do to support businesses.

Braced with 35 years of helping businesses navigate geopolitically, climate and terror risks, including 9/11, Bahr, global practice leader in risk management at consultancy DuPont Sustainable Solutions advice that “now is the time to turn risk into an opportunity.” He outlined seven steps for doing so.

1. Care for your people
It is obvious that many business owners are panicking on how they are going to make the next deal. While this is important, the health crises call you to establish robust and frequent communication with employees to understand how they are being personally impacted by the virus and provide reassurances where possible about how you plan to support them. This should also extend to your key stakeholders.

2. Build a governance system
As the coronavirus outbreak hit businesses with many being forced to scale back, or shutter entirely or teams transitioned to working from home, there is a need to set up a governance system focusing on data rather than emotions.

The system could be based on the day-to-day business; the medium-term, such as cash conservation and potential lay-offs; and the long-term, like the possibility of major economic impact.

3. Run risk assessments
The coronavirus has posed as a risk but it should not blind you from assessing other risks in your business. Even if you have an existing risk assessment, it may no longer be appropriate.

It is important to set up a new one focusing on the hygiene and safety measures needed to safeguard humans, finances, technology and operations during the outbreak.

3. Push external communications: “During a crisis, your biggest commodity is trust,” notes Bahr.

Communicate to all customers, stakeholders and the general public and reassure them that you are taking appropriate measures to fight the outbreak, and even contribute to solutions. Social media can be a great platform for this, as well as a means of sourcing ideas from customers.

4. Assess supply chains: Are your customers are still customers?

During this period determine who your customers are and what they now require from you. Then speak to suppliers about what they can offer you, being wary that they may over-promise.

If cash is tight, remember that not everything has to be done in cash: Get creative and think about how you can barter with other products and services.

5. Review operational risks
Assess all operational aspects of your business, and create a pre-start checklist to ensure you’re ready to go as soon as the socioeconomic landscape permits.

6. Use downtime productively
Make the most of any spare time to think about developing any new services and procedures you haven’t previously had time for.

Galvanize your staff and help them to feel productive and valued by involving them in this process.