The COVID-19 pandemic surprised the world as businesses in every industry suddenly had to maneuver lockdowns, ever-changing regulations to slow its spread, and uncertain consumer demand. Businesses worldwide directly experienced what can happen when external factors are not included in business continuity plans.
Now, as vaccines are widely available and the pandemic has slowed, its effects are still rippling throughout world economies. Inflation and workforce shortages are affecting nearly every sector. Moreover, additional geopolitical factors, such as Russia’s invasion of Ukraine, have introduced even more variables to a stumbling world economy.
With inflation concerns leading the charge, a survey of CFOs revealed that no respondents believe a recession can be avoided. Some criticize actions taken by the U.S. Federal Reserve, while others are still struggling to adapt to supply chain disruptions.
It seems like a recession is inevitable. So how can businesses account for recession risk to ensure they survive the downturn? In the early days of the pandemic, we shared an article on how to navigate an economic downturn. While the macroeconomic risks have evolved and changed, the steps to take so you can plan and prepare have stayed true. Read on to learn how risk management can help your organization navigate an uncertain economic climate and make it to the other side.
Now is the Time for Risk Management
Effective risk management is all-encompassing and considers every potential hazard facing the organization. Unfortunately, many businesses take a narrow focus on risk management and put a magnifying glass on cybersecurity