Due to the global spread and the related effects of Covid-19, companies are currently facing enormous challenges. In particular, the increasing uncertainty or suddenly unclear future prospects with regard to ongoing operations and/or the going concern of the company present many companies with new challenges. The effects of an impending global economic crisis are difficult to assess due to the different international approaches to dealing with the pandemic and the somehow contradictory assessments regarding duration and extent of the crisis. As a result, the risks associated with Covid-19 must be analyzed and assessed against the background of a complex risk landscape, which makes it difficult, for example, to provide an appropriate presentation in the quarterly or annual reporting.
Risk management challenges
The effects of Covid-19 can affect all activities, processes and functions, including the risk management implemented in the company. The (early) identification of risks in connection with Covid-19 is a particular challenge. Risk assessment is becoming increasingly complex, e.g. due to knock-on effects in global supply chains and the high degree of interdependencies. Frequently, no, no integrated or only "formal" risk management in the sense of defining measures is implemented, which limits the monitoring of implementation progress and of the effectiveness of the defined measures. As a result, the response to risks is often intuitive and frequently too late. (Ad-hoc) reporting to key bodies, such as the Board of Managing Directors and the Supervisory Board, is often unstructured, inconsistent and not timely.
Immediate measures to increase the effectiveness and efficiency of your risk management
The FAS can support you and your company with the following measures for dealing with the challenges of risk management in the short to medium term:
- Carrying out an ad hoc risk analysis and evaluation of your changed risk situation due to Covid-19 and the impact on the company as well as the business objectives,
- Support in internal (special) reporting on corona risks to various bodies (e.g. management or supervisory body),
- Support in external reporting, e.g. with regard to quarterly reporting or annual financial statements,
- Remote execution of the regular risk inventory,
- Interim Management (e.g. RMS or crisis management team),
- Review of the effectiveness of the process for ad hoc risk reporting and optimization if required,
- Definition of measures for the regeneration phase,
- Training, coaching and awareness-raising measures for the staff involved in risk assessment.
In addition, we are happy to take on your individual issues and develop suitable solutions.
Long-term optimization possibilities of your risk management
Furthermore, the FAS can support you in long-term measures for the further development and optimization of your company's risk management in order to prepare it for possible future crisis situations:
- Analysis of your risk situation due to Covid-19 and adjustment of the risk portfolio based on a holistic approach to risk identification and assessment,
- Implementation of a stress test to evaluate the degree of maturity and potential for improvement,
- Challenging the current risk management approach,
- Conception, optimization and further development of early warning indicators and ensuring appropriate reporting channels,
- Analysis of existing risk management measures and their implementation, as well as the establishment of continuous monitoring,
- Evaluation of the benefits of a GRC tool introduction.
Your benefits of the cooperation with the FAS
Transparent and up-to-date information regarding the relevant risks can significantly improve the quality of your strategic and operational decision-making. By applying coordinated and objective methods for the analysis of risks and by identifying potential for optimization in risk management, e.g. with regard to reporting processes, your company is well prepared for possible future crisis situations. In addition, compliance with regulatory requirements can be ensured.
To achieve these goals, we offer you a high level of project efficiency based on experienced risk management specialists. We distinguish ourselves in particular by our technical expertise and process understanding with a focus on practical approaches and solutions tailored to the size and needs of your company.
Further services provided by FAS in connection with the optimization and further development of the risk management system (RMS) include the implementation and optimisation of the internal control system (ICS) (incl. Tax CMS/SOX compliance), the assumption of auditing activities (internal audit support) and compliance tasks, as well as the performance of a maturity assessment for the functions and processes mentioned.
If you are interested and have any questions, please contact us.