Page 11 - Risk Management Bulletin February 2024

RMAI BULLETIN FEBRUARY 2024

increase in the frequency and severity of extreme prime example of the huge toll that a pandemic
weather events, as well as changes in the patterns can take not only on individuals but also on busi-
of precipitation that occur. These effects can lead nesses and entire economies. Developing a pan-
to material damage being done to property, dis- demic preparedness plan that includes steps to
ruptions in supply networks, and higher insurance reduce the transmission of the disease, such as
premiums being paid out. Investing in renewable social distancing and working remotely, is one of
energy sources such as solar and wind power is the possible approaches to lessen the hazards of
one approach that might be taken to reduce the a pandemic.
dangers associated with climate change. b. Provide routine training sessions for employees on

b. Make the office more environmentally friendly by how to stop the spread of infectious diseases.
using energy-saving strategies such as switching to c. Put into place measures to assure the continuity
LED lighting and using less paper. of business operations, such as working remotely

c. Construct a strategy for the management of cli- and using alternative supply chains.
mate risk that include a scenario analysis of the d. Cultivate positive connections with both consum-
possible effects that climate change could have on ers and suppliers in order to lessen the negative
the company. effects of disruptions.
d. Encourage staff to participate in environmentally
responsible activities such as recycling and 5. Technological hazards
carpooling. a. The term "technological hazards" refers to the
dangers that can be caused by the application of
3. Geopolitical hazards various types of technology. The dangers that are
connected to the use of technology continue to
a. The term "geopolitical hazards" refers to the dan-
gers that can result from political instability, armed multiply along with its progression. System fail-
ures, data breaches, and cyber-attacks are all ex-
conflict, and shifts in the policies of various gov-
amples of this category of risks. The following are
ernments. These dangers have the potential to in-
flict severe damage on enterprises that are located some examples of potential strategies for mitigat-
in areas that are impacted. The following are some ing the effects of technology risks: a. Carry out
routine audits to locate and address any vulner-
potential strategies for mitigating the effects of
geopolitical risks: a. Before investing in a new abilities in the system.
market, perform extensive due diligence to gain b. Create a disaster recovery plan in order to ensure
an understanding of the political and regulatory the continuity of business operations in the event
environment. that the system fails.

b. Diversify your business operations so that you are b. Provide frequent training sessions for employees
less dependent on a particular market. on how to make safe and secure use of techno-
logical tools.
c. Keep up positive relationships with the local gov-
ernment as well as the stakeholders. d. Put safeguards in place, such as encryption and
d. Make plans for dealing with potential interrup- multi-factor authentication, to secure sensitive
data.
tions, such as civil disturbance or changes in the
policy of the government, by developing contin-
gency plans. The China Card
Risk managers are growing increasingly concerned
4. Pandemic Risks about the current state of affairs in China. The percent-
a. The term "pandemic risks" refers to the dangers age of respondents who ranked a Chinese economic
hard landing as the top emerging danger increased
that can occur when infectious diseases become
widespread. The COVID-19 pandemic served as a from 4 percent in the previous study to 14 percent this

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