The COVID-19 pandemic has caught a lot of organizations by surprise. But, should it have?
We have had pandemics in the past—history teaches us this over and over. The World Economic Forum has regularly reported pandemic risk on their global risk reports over the years. Political and business leaders have warned us of pandemics.
So, why has it caught so many organizations off guard?
The problem: an unbalanced view of ERM
The reality is that organizations have not had a balanced view of enterprise risk. Too many enterprise risk management programs (including corporate risk management and operational risk management) have been focused on highly visible risks, such as IT security, while not paying attention to the significant, but low-likelihood, risks like a pandemic.
Risk management will fundamentally change because of the COVID-19 pandemic. We will see a lot of enterprise risk management (ERM) programs become . . .
[THE REST OF THIS ARTICLE CAN BE FOUND ON THE WORKIVA BLOG WHERE GRC 20/20’S MICHAEL RASMUSSEN IS A GUEST AUTHOR]