Industry Trends in Risk Management for Wayne, PA Businesses

Wayne, Pennsylvania, has long been a center for international businesses. Its location on the Main Line and proximity to Philadelphia, as well as to nearby corporate hubs like Radnor and King of Prussia, make it ideally suited for many types of industries, including biotech, pharma, insurance, and information technology.

With this concentration of pillars of the economy comes an increased need for risk management strategies that work across various sectors within this specific geography. And, current changes to business due to the global coronavirus pandemic have spurred the need for new directions in risk management.

Here are three emerging trends in risk management for Wayne, PA businesses, brought to you by villaNOVA Insurance Partners. We are a full-service insurance brokerage and consulting firm in King of Prussia; one of our key areas of expertise is risk management.

Collective Risk Management for a Networked Economy

The recent downturn in the economy following global lockdowns has demonstrated in a devastating way how connected our financial world is. There is limited benefit to protecting your own business if every enterprise in your economic web goes down, whether from a pandemic, natural disaster, or some other unforeseen event.

Risk management must therefore consider the networked economy when looking at issues like cyber threats, damage to supply chains, or stressed infrastructure. How can your business operate within more of a multi-business ecosystem where you may be dependent on external entities? We recommend the following:

  • Encourage information-sharing with business partners, suppliers, and vendors.
  • Develop alliances with experts in risk related to your industry and industries with which you interact.
  • Demand transparency from government entities and NGOs.
  • Crowdsource data used in risk assessment, including ratings, reviews, and customer-generated information.
  • Monitor the global business climate with greater scrutiny to anticipate changes to the network.
  • Partner with other businesses in establishing risk management plans and practices.

Managing Risk with Increased Cloud Technology

We saw cloud technology at the forefront of risk management prior to the start of the current pandemic. The trend towards digitization brought with it a host of new concerns for risk management, including everything from data governance and consumer privacy to 5G technology and BYOD (bring your own device) policies for employees.

With a majority of workers of all levels now working from home as part of widespread social distancing programs, nailing down risks related to use of the cloud is more vital than ever. Has your business re-evaluated its data protection plan, privacy policies, and similar risk elements since lockdowns began? If not, we suggest doing so now – not just for the current work disruption but for the future of your business.

Running Tabletop Scenarios

One reason we believe many businesses are likely struggling with the cloud technology risks mentioned above is the velocity with which the economy turned following the spread of the coronavirus pandemic from China. For many companies, it seemed the economy was humming along until one week it simply wasn’t, with brick-and-mortar offices closed, the markets tumbling, and millions of people filing for unemployment.

Failure to anticipate the coming hit to the economy could have been mitigated in many instances by running tabletop scenarios. Once the purview of government agencies and first responders, assessment and strategizing for hypothetical worst-case situations are now essential components of every corporate risk management plan.

What might a tabletop scenario for this pandemic have entailed, in addition to issues discussed previously?

  • Trial remote work periods, including testing remote access and compliance with regulatory guidelines
  • Budgeting for a decrease in revenue due to reduced customer base, supply chain interruption, and employee illness
  • Creating opportunities for online revenue generation to replace physical retail sales and/or for revenue related to the pandemic itself
  • Adjusting investments for recession and the domino effect of high unemployment, potential mortgage defaults, and hits to service industries
  • Anticipating continued economic disruption and political uncertainty in the face of not only the pandemic but also current trade wars and Brexit
  • Establishing safety nets for employees to maximize worker retention and productivity
  • Assessing current incidents that could facilitate exacerbated exposure
  • Monitoring coronavirus data and preparedness specific to the metro Philadelphia area and nearby centers, such as New York City

Let villaNOVA Assist Your Business

In these uncertain times, having confidence in your risk management experts is more essential than ever before. We welcome the opportunity to speak with your company about risk management in Wayne, PA.

It is expected that the current coronavirus restrictions and consequent impact on the economy will extend into 2021, so it’s wise to brace for the impacts unique to your business. Call, chat, or reach out online anytime. Together we can weather the storm, learn from the experience, and emerge with a plan for whatever the future may bring.