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The Covid-19 crisis will give risk management a more prominent place within organizations. PwC expert Zouhair Taheri expects it will gain a permanent place on the board agenda.
The rapid spread of the coronavirus is a typical case of a Black Swan, an event that no one had anticipated and so no one was prepared for. The world has had to deal with this many times - think of ‘9/11’ or the 2008 financial crisis - but the coronavirus crisis is unprecedented in magnitude. The crisis does not only affect a specific country or region, but the entire world. Not just some sectors, but the entire economy, on both the demand and the supply side. Old certainties no longer apply. Zouhair Taheri: "For years, organizations have used historical data to determine the solvency of suppliers and customers. These data have now lost their validity. So how should organizations determine whether they can deliver goods on credit or pay for goods in advance?"
Taheri expects this crisis to change the risk management of organizations. "It will not only receive much more attention, but I also expect that the approach to risks will change. Risk management should support the strategic objectives of the organization and therefore be integrated into all facets of the organization. In addition, organizations can make much better use of technology and the insights data provide. We see that organizations with a mature and data-driven risk management function are much better able to respond quickly, adequately and in an agile way to unexpected events such as the outbreak of Covid-19."