Kronos

THE COVID-19 CRISIS:
HOW TO MITIGATE THE
RISKS TO
YOUR BUSINESS

The rapidity with which COVID-19 spread through the world left many businesses unprepared for the far-reaching effects of the pandemic.

This situation is still evolving. Whether you’re an entrepreneur, business owner, manager, or employee, the business landscape has changed and you must take steps to adjust to the ‘new normal’.

As someone who has been part of the consultancy landscape for many years, I’m aware of how unsettling it can be to not fully and immediately comprehend the lasting impacts of an unprecedented crisis. In the early stages of COVID-19, there was no real indicator of how long lockdowns would be in place.

The more we understand this crisis, however, the more we can develop superior methods of taking care of our employees, clients, and other stakeholders. We also develop a better understanding of how to adapt business operations and carry out value-added activities during this time.

Understanding the risks your business will face is an essential step in strategising your survival.

Begin by identifying business risks

Each business is impacted by the crisis in different ways, depending on size, nature of operations, and even geographical location.

I cannot emphasise enough how vital it is to carry out a thorough risk analysis across all your business operations. It’s impossible to react to a crisis without knowing what the consequences of the event may be.

Here are some points to keep in mind during this process:

– When it comes to identifying risks, it’s important that these are categorised in relation to their impact on long and short-term business goals. This helps you ensure that you don’t lose sight of your long-term goals while preparing for short-term survival. Forethought is essential to building a sustainable crisis recovery framework!

– Your risk evaluation will also help you re-evaluate your priorities. Your priorities will inevitably shift in response to a crisis. The business landscape, post-COVID-19, will undoubtedly be different. That fact may be inescapable, but this is a challenge that can be overcome if the right steps are taken at the right time. Identifying priorities will give you a better sense of the activities you should focus on.

Don’t forget the value of digitalisation

Digitalisation has established itself as a major player in crisis recovery and management.

This is not an unexpected development. Technology may have only picked up speed in the past couple of decades, but it has completely transformed the world as we know it. The capabilities and possibilities that digitalisation opens up, are unmatchable.

In order to leverage all the benefits of digitalisation, however, we must first acknowledge that not every new innovation will necessarily optimise your operations. Digitisation is simply the process of converting data from a physical to a digital format. Wide-scale digitalisation, on the other hand, is about leveraging technologies to enhance business processes.

Implementing the right digital solutions that will positively impact your efficiency is key.

Outsourcing is just as important for risk mitigation

Outsourcing frees up business capabilities and resources by leading to the more efficient use of the tools you have.

Some of the benefits of outsourcing are as follows:

– Outsourcing makes room for your business to engage in higher value-added activities. This is essential during a crisis to ensure that resources and time are being used as productively as they can be, with higher returns for your business.

– Outsourcing allows you to delegate tasks to a company that specialises in those specific activities. When you choose to outsource tasks to a specialised company, they will be completed far more efficiently and accurately.

Cost-optimisation may help you preserve your profit margins

When evaluating business expenditure, my team at Kronos Group has found that many companies neglect to account for up to 20% of their spending.

Often, attention goes straight to core spending, overlooking other categories of expenditure that could be optimised for higher value-addition and significant savings. This includes utilities, marketing, IT, logistics, and maintenance.

Finances can be volatile during a crisis. Cost-optimisation can help cut down on financial inefficiencies and lead to the better use of resources.

Why a business consultant can be invaluable during a crisis

With a rapidly developing crisis such as COVID-19, it’s important that you remain informed and are able to swiftly adapt to changes in the business landscape. A skilled consultant is able to offer you practical advice and actionable methodologies while helping you build a sustainable recovery strategy.

Kronos Group consultants are constantly learning through the dynamic projects we are entrusted with. Our experience in the fields of procurementproject management, and finance has given us the expertise to mitigate business risks during times of crisis.

Speak to our professionals today to find out how you can boost business recovery.

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