Taking calculated risks to protect your organization from catastrophic losses isn’t always an easy task, and if there is anything the economic crisis caused by the COVID-19 pandemic has taught us, is that the world and the way we do business can shift overnight. As a result, and in the face of today’s changing domestic and global economic climate, recognizing and managing future risks has become a priority for business leaders.
In the spring of 2020, we had our second-annual Risky Business survey during the global health crisis that sent shockwaves throughout the world. We collected responses from 250 North American CFOs and their direct reports to learn about their attitudes toward risk during a major crisis and gauge their concerns related to the impact of COVID-19.
CFOs faced elevated levels of concern even before COVID-19, the top two being achieving growth and cash predictability. In the wake of the crisis, 93% of respondents stated their organization had been impacted and reported their top concern to be workplace safety in the short and long-term, while achieving growth remained a top concern in the long-term.
An eye-opening finding of the survey was that though 94% of respondents predicted their company would change their overall risk strategy in preparation for future crises, 66% of respondents said they only felt somewhat up-to-date on current tools for risk management, while 3% did not feel up-to-date at all.
This indicates a need to revisit risk management solutions and prioritize those that can also act as growth engines. Trade credit insurance is a prime example of how to safely grow your business.