The current global situation has shaken the operating models of companies in various sectors. This confronts us with a reality previously unthinkable for many, and for which many businesses had not developed sufficient capabilities.
From a business perspective, the impact of the pandemic has left companies in different positions:
- Businesses that have suddenly lost relevance and even viability
- Sectors with unstable structures and sustainable short-term vulnerabilities, which require transformation to regain relevance
- Business groups whose recovery will be closely linked to the restoration of the economy
- Companies in which structural changes have accelerated their growth
The sectors that anticipate the greatest losses in 2021 are:
- Hospitality and tourism
- Outsourcing
- Media
In contrast, those who expect to have incomes equal to or greater than those of 2019 are:
- Health
- Electronics / with
- Consumption / retail.
In this context, issues such as the digitization of services and the automation of processes are heard more as an urgent matter than as a cutting-edge project.
In any scenario, it is relevant to review the strategy and essential elements of the model to be implemented, in order to accelerate transformation initiatives that allow us to exploit current advantages, create new ones, reduce disadvantages, and even redesign models.
La Risk management It emerges as a unique tool capable of providing information on external and internal issues and their favorable or unfavorable influence on the business. This situation challenges the leaders of these initiatives, as they must approach them with different ways of thinking than those used before the health crisis, with a level of depth and clarity that leads to creating new initiatives, strengthening existing ones, and above all, promoting coordinated action at all levels of management and across all pillars of the business: strategic, operational, and human resources.
To achieve this strategy, it is worth analyzing the current landscape, the pillars we considered relevant, and, above all, the level of influence of external aspects such as: the market for our products, new consumption habits, new regulations, new health and safety requirements, supply chains, and sources of financing, among others.
It will also be worthwhile to constantly monitor the direction taken by the different areas of the operating model and the qualities to maintain and develop in order to achieve the company's objectives. Aspects such as:
- The availability and quality of resources in the supply chain
- The capacity of the production processes themselves
- Digitization and automation of processes
- Customer experience
- Physical security of infrastructure
- Availability of technological resources and cybersecurity
- Talent health and safety
- Flexibility in work schedules
Dynamic risk analysis models
It will be important to structure dynamic risk models that analyze the evolution of current risks, study potential links between risks, and the impact they may have in combination on the organization. These models should include, as a natural part of the process, staying alert to emerging risks, as well as analyzing business opportunities that arise in changing environments like those we were already experiencing, and whose dynamism will only intensify.
Integrated approach to management
Ensuring that the risk management model leads to an integrated operational execution dynamic across all its elements and management layers will be relevant to achieving greater operational flexibility, thereby increasing the chances of achieving objectives in changing environments.
A well-designed risk management program would be a valuable tool for maintaining business direction in a changing and uncertain environment, as well as for driving the right strategies to capitalize on strategic advantages, strengthen key management areas, and even reconfigure the operating model. In this scenario, the Board of Directors' leadership will be essential to maximizing the program's benefits.