- Quick change in focus
An old time favorite, ‘Who Moved My Cheese?’ by Dr Spencer Johnson, a must-read for every risk practitioner, brilliantly relays the value of speedy acceptance and adaptation to a change. While some organizations carried on with exactly the same tasks as in pre-COVID-19, 70% of Operational risk teams have demonstrated agility and a quick shift of attention to the areas of material importance. They have been able to pause and reflect on the objectives, then put aside non-urgent projects and programs and focus on key risks posed by the pandemic.
Undoubtedly, one key Operational risk is People risk, concentrating on the physical and mental health and wellbeing of every company’s employee. Risk practitioners have been instrumental in working with HR teams to recognize People risk as a top-line item as well as:
- evaluate its level to understand whether it is increasing or decreasing
- monitor its behavior via adequate metrics and Key Risk Indicators
- ensure it is mitigated with meaningful actions.
The pandemic is taking its toll on well-being; research conducted by the Society for Human Resource Management found that between 22 and 35 percent of US employees experience symptoms of depression. The way in which companies behave, take care, and look after their staff will not only impact employees’ current welfare but will also have a profound bearing on their longer-term emotional engagement with the organization and willingness to remain loyal to the firm.