IN DETAIL: BUSINESS RESILIENCE
From Surviving to Thriving While the outbreak of coronavirus has disrupted global economies and supply chains, with this new normal comes new opportunities. – By Lennard Yong
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s the COVID-19 outbreak infects global supply chains and disrupts economies around the world, 49% of operational executives at APAC organisations are feeling the pain and are concerned about the future of their business, according to a Business Sentiment & Resilience Barometer Report recently released by Tricor Group. But the situation is not entirely grim, with the outbreak offering critical learning experiences that can amplify business resiliency now and for years to come. The following are the best practices business leaders can implement to scale up operational readiness and response in the face of uncertainty.
De-risk supply chains and consider diversifying International businesses were gradually shifting toward alternative markets to fill manufacturing and sourcing needs amid the US-China trade dispute. But COVID-19 has turned all the lights on, illuminating the risks of single-market dependency – especially with companies that operate or source from mainland China, the US and Europe.
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If there’s anything to be learned from COVID-19, it’s that offshoring and outsourcing help companies rebalance single-market dependencies and protect a company’s bottom line against unforeseen events, like health crises, natural disasters, trade tensions and social unrest. Companies with operations in multiple markets agilely respond to disruptions in one market by seamlessly transferring operations to another.
Ensure robust protection in governance, risk and compliance (GRC) According to research from the Financial Times and Ropes & Gray, 57% of senior-level executives rank risk and compliance among the top risk categories they feel least prepared to address – and 69% of executives are not confident that the risk management strategies they currently have in place will meet future needs. As COVID-19 prompts companies to diversify operations into new markets, they must be acutely aware of cross border compliance issues. Noncompliance wreaks havoc on a business’s financial