Sharp increase in employee-related risk due to COVID-19

A global survey of over 160 senior risk professionals from banks and insurers has revealed that the risk landscape look nothing like what they had expected it to be in 2020 due to the coronavirus.

The survey was carried out by ORX, an operational risk association for the financial services industry.

While cyber and information security was named the largest risk in a similar risk profile survey released by ORX in January this year, business continuity now stands as the biggest risk.

Meanwhile, the survey disclosed that ‘people risk’ – which refer to concerns associated with a company’s employees – has risen considerably in the rankings and is now within the top risks that firms are focused on mitigating this year.

Commenting on the rise in ‘people risk’, ORX research and information director Luke Carrivick said, “There are a myriad of issues businesses need to consider around their people in the fallout of coronavirus. Staff are either working remotely in places that the organisation does not own and therefore cannot control, or in office environments that require additional health and safety measures.

“Considerations raised in the survey range from increased responsibility for someone’s physical safety and mental wellbeing, all the way through to it being more challenging to train, develop and retain staff, or to help them feel affiliated with company culture when working remotely.”

At the same time, survey respondents raised the issue of ‘key person risk’ if only certain members of the team are trained for specific tasks and they contract coronavirus.

Source: Asia Insurance Review

http://www.insurancealertss.com//Insurance/Service/Asia%E2%80%99s%20Finest%20CMO%20Awards%202020