It is like a powerful storm that limits our lives, our businesses, our society. We have all seen the dark clouds coming. Anyone with an umbrella or a roof over his heads felt prepared. However, the current situation has taught us that wind can break the umbrella, that a roof can leak.
The corona virus keeps the whole world in check. Incomparable. Depressing. Dragged behind. Waiting. Chaos. Slowing down. Standstill. After the thunderstorm the sun will shine again. Even if the future looks uncertain. “Now it is important that we look ahead. The slowing down creates time and space to think about the time after the pandemic. It is clear, that it is coming. We just don‘t know exactly when. We can already plan life after Corona, take the future into our hands and stabilize our companies”, Stephan Dorner is convinced. The risk expert wonders what this global crisis can do and what we can learn from it. And that is exactly what is essential. Because for him it is clear: “We don‘t know how our new everyday life will look like. But it is certain that the next big challenge will come at some point. And we should be better prepared for it.”
In everyday life, everyone is a risk manager
Everyone knows risk management from everyday life. We are preparing us for the dangers and challenges that are usually to be expected. Here some examples:
- Photos are uploaded to a cloud and thus „backed up“.
- The pantry is filled regularly.
- A preventive medical check-up should reduce health risks.
- Secured payment power is required so that we can continue to pay our homes.
- An equity cushion protects against crises.
“It‘s similar in business, but the risk potential is significantly higher. The failure of energy, key systems or utilities, but also of employees, suppliers and customers, can threaten the existence of any company. You have to be prepared for this and have emergency plans ready, because the range of challenging situations is wide”, says Stephan Dorner.
He also says quite frankly: „Have you ever thought about something like this? Did you expect an incident that would slowdown the whole world in such a short time and throw it off the track? - Most likely not. Although the likelihood of this is very low, this extreme situation has arisen and gives all of us a new challenge. Some were well prepared. Many got cold.”. Due to the restrictions, every company had to set up alternative measures and reorient itself. “It was new for many even to switch from face-to-face conversations to videocall. Now, however, much more „unwanted needs“ for the companies arise. Topics that are currently on the agenda are: external maintenance, delivery of spare parts, raw material supply, transport and employee safety as well as restrictions imposed by the authorities”, states the risk expert.
Plan B is needed
It is not always possible to predict which stones will be in our way in the future. „Nevertheless, you can prepare well for a worst case with sophisticated concepts and securing the necessary reserves in order to be able to act quickly in a particularly demanding time.“ So, it‘s important to have a plan B in the drawer. But: „This must remain up-to-date and be maintained, i.e. regularly revised“, advises the expert. The daily life situation, needs or the general conditions for a company change: “A new customer, a new employee, a new product, a new business location - such aspects require the ongoing adjustment of an operational emergency plan. In our company too. This is time-consuming, but it is needed in order to manage challenges better”, explains the risk expert.
What company can bear?
Precondition for an emergency plan is detailed analysis. “As an entrepreneur, you must ask yourself what can endanger your own company and in which areas it is most affected. And: How can operations continue in a crisis? How much is a company affected if raw materials cannot be delivered? How long can the production stand still and the company still exist? What changes are necessary to continue working, producing, and economically diving through this challenging time - under unpredictably difficult conditions? How thick must the financial cushion be? How can I prepare employees? How do I deal with it when production is endangered?”, Stephan Dorner sums it up. Continuing to before mentioned, the entrepreneur can define priorities and allocate the necessary resources.
Crises magically attract one other
Time is showing us what is all possible. Corona is not enough. These weeks, that are anyhow hard for all of us, Zagreb suffered the hard Earthquake. “One crisis usually doesn‘t come alone. Long-term crises make other parameters more intense”, shows Stephan Dorner‘s experience. “Even in an exceptional situation, you should be prepared that things can get worse. Precisely when a fire starts, the failure of IT systems, suppliers or partners, an employee‘s accident, a natural disaster, etc. hit us even harder. No matter whether private or professional. If we are unprepared, it hits us double hard”, says Stephan Dorner, who, with his team from risk on mind®, is on hand to provide advice and support even in this challenging time and is happy to roll up his sleeves to set the sails for the future with you.
One thing is certain:
There will always come a crisis that cannot be predicted and cannot be avoided. However, it makes a big difference whether you are well prepared for it or not.
The entire team at risk on mind® wishes you all a lot of strength and energy to survive this crisis safely. We are always here for you!