Should an outbreak occur here businesses will need to be ready, and being ready will have numerous moving parts.
Should an outbreak occur here businesses will need to be ready, and being ready will have numerous moving parts.
Business
Being part of a board is very much being part of a team environment and it is crucial that it is comprised of a wide range of skills and expertise – in that way it can be in the best position to make decisions.
I recently completed my tenureon a board and it was nice get feedback that my contribution played a part in the board functioning effectively.
The interesting part of my farewell was learning from the chairperson and others about that contribution was most seen and it was primarily in the area of risk management – not surprisingly as it is an area of specialty for me.
And it is a good time to be thinking about risks and how they are managed in light of local and world events since the commencement of the 2020 calendar year.
By now everyone should, unless you are a hermit, have heard and learnt about 2019-nCoV (now known as COVID-19). This is the novel coronavirus which has taken root in China and appears to be popping up all over the world.
The virus is now established and is having impact on financial markets – particularly as China takes drastic measures to contain the outbreak. While it is concerning, definitely, it is not a silly question to ask how is this going to affect my business?
And, unfortunately, the answer to that question is complex and is determined by your exposure to changes in the market (kind of like your exposure to the virus itself).
The answer also will rely on how things play out over the coming weeks and months.
Certainly, the shut-down of major cities and transport routes can only cause exponential pressure on world markets the longer it continues.
And, like viruses spread, concern over trading conditions and production will potentially grow.
However, the major measures undertaken to date to control the virus have more chance of curtailing this outbreak than the wait and see approach which was employed in the early days of the outbreak.
In my view, wait and see is probably not the best approach as it applies to business.
Should an outbreak occur here businesses will need to be ready, and being ready will have numerous moving parts.
That includes being fully conversant with obligations as employers for staff absences and also monitoring their revenue and stock streams (the ability of access raw materials and stock and the ability to get goods and services to customers).
You should also develop a risk management plan and a business continuity plan now rather than wait for something to happen.
The coronavirus is very much a current topic at board tables and risk committees and should be considered now by all businesses – and this is appropriate as my view is it is only a matter of time before NZ experiences its first cases.
Articles outlining surprise of Kiwis returning from China at the lack of health related checking at Customs borders doesn't elicit a lot of confidence.
At this stage we are trusting in the Government and health authorities that they know what they are doing.
However, if a planeload of locals out of Wuhan are transported direct to a quarantine facility I struggle to see how "self-quarantine" for other travellers is a similar or even an appropriate risk response.
And that is the key, ensuring an appropriate risk response. When I ran my very first risk workshop back in 1999 with a major client, the vision was "risk aware and risk prepared" – there is no better time than now for businesses locally and beyond to be living this.
•If you want to assess your risks or set in place a business continuity plan give Russell a call on 021 244 2421.
