A year ago, I wrote about 5 things I’m doing during the COVID-19 pandemic. My region had just entered a period of restrictions and I was adjusting as were many organizations. I stayed on course with my five things (see blog). Now it’s time for some new observations.
Some Were Sought Out – Others Ignored
The first thing I noticed was that ERM teams were treated differently. Some were sought out as a key source of insight. Others were viewed as administrative effort with priority focused elsewhere. It was revealing to some as to where the views landed. Those that were sought out weren’t being asked to produce more reports or presentations but engage real time in the decisions impacting management. The key differentiator became more about whether an organization could help improve performance.
Some Worked to Improve
ERM teams not on the immediate minds of management had a chance to reflect and change. Several have revised their approaches so that as they emerge from the shadows, they have a better way to engage with management. Some have made significant improvements. Interestingly, those that didn’t change on their own were sometimes being told by management that they better do it now, because the management team doesn’t want to go back to the way it was before March 2020. Those folks are playing catch up now. A few are just going to resist change.
Old Pitfalls Still Exist
One of my constant complaints is with the lack of understanding of ERM within the software community. I’ve attended a variety of webinars and had a few conversations in the past months and sadly they are eager to pick up where they left off. I’m just not seeing the emergence of understanding that ERM is not a nice risk list or risk-based heat map. They continue to be a barrier to innovation in the ERM space. I’m sure some, or several, will take exception to my comments but until a truly innovative solution for ERM comes along, many teams will stay with Excel and PowerPoint.
A Broadened Mindset
For years, the sense is that we as risk people ignore those low likelihood risks. They’re just not worth our time. Perhaps it’s a sense that there are other more important risks or that they aren’t likely to happen on my watch. One organization previously reflected on these low-probability risks as absurd to even capture and suggested if we were going to include then we should add “meteors hitting the building” as just as likely as a pandemic. The emergence of COVID-19 has brought home for many that low likelihood does not mean no likelihood. They too are worth our attention.
Many Are Now Wanting to Push Practices Back to Full-force
The first few months many were working to find their legs. The transition to remote working, getting used to virtual meetings, and balancing other life demands were all new. With the second, and for some a third, wave organizations are learning to take this more in stride. ERM teams need to be back to full force. The pandemic is no longer an excuse for underperforming. For some, the learnings and reflections of the last year will put them in a good position to take on new challenges. For others, the time to enhance your capabilities is now.
My Final Thoughts
What seems interesting now to me is the staggered pace at which companies will emerge from COVID restrictions. We all entered at pretty much the same time and pace. Coming out will be different. Others that emerge from restrictions before you may have a competitive edge. Using a simple sports analogy, teams in the professional sports leagues in North America (those in the middle of a season) all suspended operations on the same date. While the NHL and NBA are back playing games, some are starting to play in front of fans while others are not. How much better might your team play in front of its home fans versus an empty stadium?
How is your organization going to fair in a very different and perhaps uneven landscape?