Business Continuity in an Unpredictable World

Our difficult global economy is full of uncertainty. Companies today must contend with many factors beyond their control that threaten their ability to conduct business as usual. The past few years have brought new levels of mobility to an unplanned operating environment. Here, I will examine some of the complex challenges facing organizations and explain the first steps they can take to facilitate business continuity when the unexpected occurs.

Labor shortages and supply disruptions

COVID has greatly affected many sectors of the workforce. The beginning of the disease sent many workers home from the office, and a large number did not want to return. People are reassessing their career paths and reassessing their priorities. In addition to the Great Retrenchment and talent pool, some older (and more skilled/experienced) employees have decided to retire to protect themselves from COVID and other threats. Workplace health in a so-called “Great Retirement.”

Many businesses had to lay off workers during the pandemic shutdown, but now that the economy has reopened, they are struggling to find people with the right skills to hire. The workforce uses underutilized resources, such as those in remote locations, military personnel, retirees/elderly and those with disabilities or disabilities. can be used appropriately. The intense competition for a limited pool of talent, along with high inflation and poor living standards, has led to the need for higher salaries.

In the context of the economy, the increase in mortgages, loans, school fees and other expenses has further questioned the stability of work. As we have seen recently in the technology sector, employers are managing the recovery and development of the local system to support their own fight against the economic climate. As such, employees may be reluctant to switch to other organizations or industries, choosing to stay with their current employer.

These and other changes in the workforce have resulted in a shortage of workers in key sectors, such as manufacturing and transportation. Staffing issues directly affect the amount of products delivered and the time it takes distributors and customers to get those products. In the area of ​​transportation, the car is a particular pain point; Older drivers are retiring, and younger drivers, who have seen the benefits of flexible work during the COVID era, are less willing to commit away from their families for long periods of time.

The challenges in shipping have an impact on manufacturers, who rely on shipping companies to ship raw materials. Slow shipping means delays in manufacturing and shipping finished products. The supply chain may be disrupted by deglobalization, with some regions choosing to meet the needs of their local markets before exporting.

Geopolitical conflicts

The Russian invasion of Ukraine led to a lot of focus on economic sanctions, especially in international organizations. Some of these sanctions are imposed by world governments, while others are “self-imposed” by organizations trying to distance themselves from the conflict and its effects. Either way, sanctions can severely limit international trade. Organizations should examine whether and how they can do business in regions affected by sanctions – even if the funds are theirs. links can be passed to banks that may be or have already been approved.

The conflict between Russia and Ukraine also affected the supply chain. As my friends have shared on the blog, that part of the world usually supplies raw materials to the world’s auto industry and manufactures auto parts. vehicles, such as cables, are important in the production process. This has contributed to the increase in the cost of car claims. This is just one example of the impact that geopolitical focus in one region can have on our interconnected economy. the world.

Reduce and manage risk

When unusual events threaten to disrupt the normal course of business, organizations must explore what they can control. Better yet, they should establish business continuity measures before disaster strikes.

As outlined in the principles of risk management, the first step is to identify risks. In anticipation of potential threats, organizations should identify their potential customers and conduct due diligence. in each case. It is important to know and record how long they have been operating, where they are located, their business focus, what their priorities are when they arise. supply disruptions and their business continuity capabilities.

In addition, international businesses must have strong tools for monitoring sanctions, as well as a thorough understanding of how sanctions affect operations in different regions. Looking at negative media coverage of key vendors and their market segments also supports risk identification and mitigation.

When it’s time to put business continuity plans into action. Efforts to manage the risks presented by the challenging situation may include double-checking materials and services to ensure availability, conducting regular reviews and purchasing important products to increase mutual understanding, and diverting from commercial pursuits. and partnerships that do not align with your organization’s specific values ​​and regulatory guidelines.

I repeat the envy of my friends at the bottom of the digital magazine that the best way to manage the uncertainty and risks of tomorrow is to develop and invest in long-term partnerships today. . Strong relationships with culturally compatible partners always prove invaluable in weathering storms of uncertainty.

By David Berrey

Courtesy a Sedgwick

Information

Be the first to comment!