When the COVID-19 pandemic struck, many businesses were unprepared to deal with the impact on their operations. We look at the lessons to be learned and what you can do to prepare for future events.
It’s often said that no one could have foreseen the COVID-19 pandemic. While the exact nature of the virus may not have been predicted, there had been plenty of warning about the potential for a pandemic of some sort to occur.
So why did people ignore the warnings? Analysis by Interactive Investor shows that only 13 of the UK’s FTSE 100 companies included the risk of a global pandemic in their 2020 business plans despite warnings as far back as 2016.
It’s hard to get businesses to invest in measures to mitigate high impact, low probability events. The Health and Safety Executive sums it up like this: “Every day, consciously or unconsciously, we all view hazards and evaluate their risks to determine which ones we choose to notice, ignore or perhaps do something about.
“We may take the consequences of some risks for granted and, for others, consider that our own chances of being harmed may be either more or less than the average, depending on the apparent degree of control we have for taking or limiting the risks.”
Of course, threats don’t have to be global to bring your operations to a halt. The breakdown of a critical machine could be enough to stop production. Everyday risks like fires, extreme weather and civil disruption can also impact your operation.