What the Banking Industry Can Learn About Preparedness From the Pandemic?
For banks and credit unions, the coronavirus crisis has been as challenging as it has been tough for the people they serve. More trouble could come from the pandemic later on and political and economic turmoil will surely continue.
In the midst of this, it is important that banks take valuable learnings from this pandemic, and implement solutions to better themselves. Conducting risk evaluation to a certain degree of objectivity and specificity not only positions banks to a constructive risk management approach but also acts as an ongoing living record of the risk status of a business and essential control on inventory.
The task of risk evaluation brings about high internal capability and resilience within banks. Some of these invaluable learnings are as follows:
- Rethink how you cross-train and train employees, since going forward we will be needing people to support each other
- Showcase your ability to scale protective efforts and mitigate impacts
- Identify all the relevant risks and document them
- Hire employees with a zeal to expand their skillset
- Be proactive and formal in your approach
- Make an effort to learn things before you need them. A plethora of information and intelligence exists in the banking community, which can be utilized in case of an emergency. Banking organizations thus need to be aggressive in acquiring new information and acting on it.
- Encourage employees to engage outside the workplace to build stronger and deeper social networks
Today, regulators expect banking organizations to develop appropriate response and preparedness plans by properly assessing the risks involved. When the next pandemic arrives, regulators will be looking forward to these plans being implemented by financial institutions to help mitigate the operational impact.