As published in Commercial Risk
Risk management budgets are likely to increase following Covid-19, but investment in the same old frameworks will mean many companies remain inadequately prepared for the next unexpected event, according to two risk technology experts.
Jim Wetekamp, chief executive officer of Riskonnect, a risk management software provider, told CRE that risk management budgets are set to rise following the shock of COVID-19.
“We are seeing an increase in risk budgets relative to operational budgets. Many risk managers are being asked what the appropriate response [to the pandemic] is and what resources are required to meet the challenge,” he said.
However, organisations should not be tempted to spend these budgets doing what they were doing pre-pandemic, said Mr Wetekamp. “It is not viable to revert back to ‘business as usual’ when it comes to risk management strategies. 2021 should not mean a return to 2019. Organisations need to re-evaluate the future of risk – the tools, skills, and risk management frameworks they will need to ensure resiliency,” he said.
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