FERMA’s COVID-19 survey shows that risk managers have made important contributions to the resilience of their organisations during the ongoing pandemic.
In the immediate response to the crisis, respondents made a clear prioritisation of people — ensuring a quick pivot to teleworking, facilitating health and safety measures for staff. They participated in task forces and crisis units, promoted communication, took a strong role in maintaining business continuity and, where possible, pursued insurance recoveries.
Preventing or limiting interruptions to business processes and activities is an integral part of any Enterprise Risk Management (ERM). Risk management tools such as a business continuity plan (BCP) provide a framework for building organisational resilience against disruptive events, such as this pandemic and the resulting government actions, e.g. lockdowns.
Before the pandemic
During the crisis
To what extent do you agree with the following statement: ‘there is not an insurance product available that provides my organisation with sufficient financial protection from pandemics or other large catastrophic risks’?
To what extent would your organisation be interested in a non-damage business interruption insurance product that provides your organisation with coverage in event of pandemic (or other catastrophic events)?
Quotes from respondents
Examples of 3 risks emerging from respondents
Insurance & Risk Manager, Belgium, from the retail sector:
- Employee management (work from home transition)
- Managing the fear
- Managing supply, compliance and conformity of new
products (masks and gels)
Insurance & Risk Manager, Luxembourg, from the manufacturing sector:
- Customers credit risk has strongly increased, although bankruptcies are still to materialise.
- Dependencies on critical raw material sourcing.
- Cyber-risks furthermore increasing with vulnerabilities to network and more risky behaviours with remote working.
Insurance & Risk Manager, Belgium, from telecommunications, technology, internet & electronics:
- Cyber risk
- Market/competition risk
- Geopolitical/macroeconomic risks
Insurance Manager, Norway, from the manufacturing sector:
- Cyber risk (working remotely / home office)