We commonly hear about business leaders and entrepreneurs fear about the uncertainty of the future of business. Admittedly, COVID has severely impacted the global economy. This is not to underestimate the positive environmental aspect of it. Assessing risk during this time should not be considered “business as usual”, we have to factor in the increased level of uncertainty going forward.
How should we assess risk during this time of increased uncertainty?
Coming from an accounting background, a suggestion would be in using the famous concept of skepticism, as a questioning mind helps immensely during uncertain times. In accounting we consider any probable losses but not any probable gains when calculating profits.
The above discussion leads us to assessing that risk will be estimated higher when we are facing increased uncertainty. There is no one size fits all during such times, the industry can change the rules of the game as time progresses. Tourism and travel industries are facing definite challenging times, whereas certain industries such as technology, sanitary ware and delivery businesses that capitalize during such tense situations benefit from the same.
Another major consideration in risk assessment is the vigilance that we have to perform when using risk assessment methodologies and templates, as a rule of thumb the specificity of each organization, industry, and economy are to be considered while using those methodologies and templates.