The Senior Risk Manager of Baobab Microfinance Bank, Lawrence Akande, has encouraged business owners to follow risk management approaches to mitigate undesirable events during and after the COVID-19 era.
Akande who spoke at a webinar on the topic ‘How to mitigate business risk during and after COVID-19’, said the impact of COVID-19 on businesses and households was huge with rising unemployment, increasing inflation, contracting Gross Domestic Product (GDP) and naira devaluation.
To mitigate business risks, he urged business owners to set up a crisis management taskforce adding that managing a crisis required governance and process management.
He said the taskforce would then do in-depth analysis of the issues and report to top management. Akande also called on the management to identify emerging risks to help to get a more realistic sense of it, and empower the taskforce to manage the crisis.
“The next step is to evaluate and prioritise risks based on impact and likelihood. The risks that are very likely to happen and have big impacts, need to be tackled first. Next come high-impact risks that are less likely to occur, followed by low-impact risks that will certainly happen. Low-impact risks that probably will never happen get the least priority.
“Having the right organisation, people and processes in place empowers your organisation to constantly plan, monitor, act on, evaluate and mitigate risks,” he advised.