The impact of COVID-19 on risk management

ERM programs have helped credit unions weather the storm and learn to look at internal and external risks differently.

No event has illustrated the importance of having a formal enterprise risk management program more than the COVID-19 pandemic of the past year and a half.

“The initial impact of the pandemic was huge and required a significant pivot in operational plans,” says Tony Ferris, founder/CEO of CUES Supplier member Rochdale Paragon Group LLC, Overland Park, Kansas. “However, the unforeseen and broad-reaching risks and opportunities are the real issue. It’s the downstream issues that are not right in front of you that are likely to hurt, such as the accelerated adoption of electronic delivery methods, and the short- and long-term talent management implications will drastically cause us to rethink our strategies.

“Those who have mature ERM programs have been able to more effectively identify and assess these implications, allowing them to proactively drive their strategies versus simply being reactive to what hits next,” Ferris adds. “They were able to assess and reassess the new environment while still keeping in mind and in view their strategic plan and objectives.”

Craig Wilson, senior director of consulting at CUESolutions provider Experian, Costa Mesa, California, contends that the volatility of the pandemic era has intensified the need for an ERM strategy.

 

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