CONTRIBUTORS | RISK ASSESSMENT
BEATING COVID-19
Assessing Virus Risks Operational Risk Management offers a decision-making tool used to identify, assess and manage risks by reducing the potential for loss.
AARON POENTIS
T
he rapid spread of the coronavirus has caused significant concerns over how to prepare for the possibility of having an infected individual impact your commercial or residential property. COVID-19 has caused thousands of fatalities around the world. It is a relatively new disease and information about COVID-19 is constantly evolving. Currently there is no cure or vaccine available. It is spread primarily person-to-person, and evidence exists that a person can become infected by touching their mouth, nose or eyes after contacting a contaminated surface. Every state has a confirmed case of COVID-19, and most states, including Hawaii, have issued mandates that people shelter in place or stay at home. All businesses rely largely on person-to-person interaction. If you are in an industry that relies on significant per-
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sonal interaction, there is a greater risk for your employees, customers and business being impacted by COVID-19. One basic operational principle of business is to assess financial risks with reward of financial gain. A business response to a COVID-19 incident must be viewed as a risk assessment and analysis, commonly referred to as Operational Risk Management. ORM is a decision-making tool used to identify, assess and manage risks by reducing the potential for loss. Using ORM increases the probability of a successful business operation during a crisis such as COVID-19. It encompasses the activities involved in identifying hazards and evaluating risk to a business throughout the life cycle of a task or operation. ORM functions to assure that risks to a business, employees and customers are controlled within the business’s risk tolerances. The correct application of an ORM process enables businesses to make informed decisions that will reduce losses and associated costs and, as result, will lead to a more efficient use of resources. The first step in conducting an ORM is to identify and understand the COVID-19 hazard and its potential impacts to customers, employees and operations. An assessment of the COVID-19 hazard is then conducted where a determination of risk in terms of probability and severity is made. In basic terms, the following questions should be addressed:
