Optimizing Risk Management in a Post-COVID World

The COVID-19 pandemic is leading to significant social and organizational changes. To speed up the recovery of companies, managers must implement the concept of future work, formed on the basis of methods and approaches used during the crisis.

The Influences of Post-COVID World and Its Connection to Business

Despite the uncertainty of the situation, people did not lose hope, and society showed empathy and resilience. The organizations promptly took measures to protect the health and safety of their employees and implemented new HR strategies to organize work remotely. Although many companies found themselves in a difficult situation and were forced to lay off staff, go on unpaid leave and temporarily cease operations. Different ecosystems have come together to work together to bring about meaningful change. Social entrepreneurship began to spread actively in the business environment.

The shocking growth of optimizing risk management, caused by the COVID-19 pandemic, requires the management of enterprises to carry out a rapid organizational transformation, which will provide conditions for the timely formation of effective anti-crisis solutions. Technology is likely to affect international trade, leading to increased trade in hardware and software and reduced trade-in finished physical products.

The subjects of optimizing risk management do not need to spend time looking for the right product or service, they do not have to be present at the time of the transaction in a particular place, just make a couple of clicks at home and wait for the order. The comfort of these legal relations – the key to demand for them. As a guarantor of the rights and freedoms of their citizens, more and more states are raising the issue of regulating e-commerce, in particular, the conclusion of electronic contracts at the legislative level.

How to Optimize Risk Management in the Pandemic Era?

The outbreak of the coronavirus pandemic led to a decline in the world economy, trade and commodity prices, and an outflow of capital from new market economies. Thanks to large-scale stimulus measures, the prices of assets and goods have partially “played back” the fall. The recovery of the global economy is expected in the second half of the year, but there are a number of threats to this scenario.

To optimize risk management in the pandemic era, it is recommended to pay attention to:

  • Identification and monitoring of potential threats and risks to efficiency and stability of the enterprise.
  • Formation of the potential of sustainability and resilience to destabilizing effects. Organization of reorganization or liquidation.
  • Ensuring the technical and technological development of the enterprise, timely renewal of fixed assets, compliance production to international standards. Formation logistics chains, ensuring their variability.
  • Ensuring financial stability, diversification of sources of financial resources. Development of investment programs.
  • Optimization of working capital management. Expansion of sales channels. Flexible pricing policy.
  • Aggressive advertising campaign. Monitoring market trends.
  • Timely update of the product line. Modern system motivation, incentives to increase productivity and creativity.

The results of our study are very timely and important for companies, as they help to rethink the process of returning to work after quarantine. The current deep crisis, which has simultaneously faced businesses around the world, allows us to rethink the traditional perception of the relationship between man and technology as competing and finding new opportunities, combining unique human competencies and technology capabilities. This approach can help organizations find new ways of development in the coming weeks, months, years.