Rochdale Paragon Group recently released two pieces of guidance regarding assessing some of the risks being faced during the current COVID-19 pandemic. The first, Approaching Coronavirus from a Business Risk Perspective, provided general guidance for considering the myriad of risks credit unions face as a result of the pandemic. The second, Approaching a Remote Workforce from a Business Risk Perspective, specifically addresses additional risks that may arise from remote work arrangements, which many credit unions are deploying for the first time. Both articles include a number of risk considerations, broken down by the seven standard risk categories.
These risks are not meant to be added as individual exposures to be assessed in your ERM risk matrix. Rather, they are intended as considerations in developing your credit union’s pandemic response, deploying your employees remotely, and updating related policies. These tools can be used to strengthen your pandemic plan, and to complete standalone operational risk assessments related to these items, but we do not recommend adding a large number of granular risks to your high-level, strategic ERM program.
We recommend that you assess a pandemic risk in each business unit. In doing so, you may want to consider a scenario that reflects what we’re learning about the real risks related to this event, and not just lost productivity from a portion of your workforce being unable to work due to illness. You may also want to add a general risk around remote work arrangements. If you have further questions, please contact your risk advisor at Rochdale Paragon Group.