Navigating the Pandemic Response Lifecycle
No matter how prepared we think we are for a pandemic, the reality is that things can move and change quickly within a matter of weeks or days or hours. Businesses can find themselves struggling to keep pace as the pandemic’s growth and impact hijacks the in-place risk management framework. How an organisation responds during a pandemic like COVID-19 will not only depend on its preparedness and resources, but also depend on at what stage of the pandemic’s lifecycle it is operating in.
To successfully manage an organisation’s business and people through a pandemic, organisations need to be agile and develop bespoke response strategies tailored to their business and risk profile, which are then tested constantly to ensure their effectiveness. Marsh’s Pandemic Response Lifecycle tool can help organisations navigate through the five key stages of a pandemic: Pre-pandemic, Pandemic International Outbreak, Exponential Pandemic Growth & Business Interruption, Pandemic Recovery, and Post-Pandemic. By uncovering the changing risks and challenges throughout the various phases, the pandemic lifecycle helps organisations determine the most effective ways to respond to and manage these challenges.
During times of uncertainty and economic downturn, the impact of any financial implications can often be more intensified and have a material impact on any business. As organisations navigate through a pandemic, they can explore potential cost saving opportunities through insurance rebates and Workers Compensation adjustments, or examine ways to improve cash flow through premium funding solutions or surety bonds. Despite the hardening of the insurance market, Risk Finance Optimisation can potentially help an organisation help reduce premium spend by determining the optimal policy limit and retention levels that will result in the most cost effective outcome of structuring an insurance program.
Organisations should be proactively managing their balance sheet and exploring cost saving options, as any savings achieved during a pandemic could potentially influence the viability of a business both during and post-pandemic.