5 Answers to Questions Boards are Asking During COVID 19 Pandemic
No matter how experienced you are as a risk manager or how much previous boardroom exposure you’ve had, we are dealing with unprecedented times. This article will help you prepare for the next board meeting and anticipated questions by board members.
1. Business Continuity
Once the Covid 19 outbreak is controlled, corporate leaders will want to review and renew business continuity plans. They will want to assess how existing business continuity plans worked during the pandemic and identify any deficiencies and lessons learned in order to build solid contingency plans. Risk managers might be asked to assess multiple scenarios to understand the potential impact on financial performance and determine how insurance may play a role in mitigating losses.
2. Cash Availability
In the current abnormal business conditions, companies are shifting their focus from income statements to balance sheets. The board will want to know about short-term cash flow monitoring discipline (i.e.: involving supply chain payables) in order to minimize working capital requirements during these challenging times.
3. Remote Work Issues
Companies may need to make adjustments to expand flexible work arrangements and other policies to allow employees to work remotely and safely as companies navigate through the crisis. Risk managers will want to establish employee safety programs and policies that support a safe working environment.
4. Government Financial Aid
The board is going to want to know about government opportunities for financial support. Risk managers will want to start tracking losses in order to be prepared to file claims.
5. Privacy Issues
Many businesses are unsure of whether and how to collect and disclose their employees’ health information under applicable privacy laws during the outbreak. Risk managers should keep up with notices from the Office for Civil Rights (“OCR”) at the US Department of Health to determine how HIPAA rules apply.