Impact of COVID-19 on Business and Technology & Risk Mitigation Strategies for CIOs

Impact of COVID-19 on Business and Technology & Risk Mitigation Strategies for CIOs

• The outbreak of COVID-19 in China disrupted the global value chain. With more cases being reported in the USA and European Union, the level of disruption has widened and deepened considerably.
• The pandemic has also resulted in acute market volatility across the globe.
• The implications of the outbreak were less when cases were reported only within China a few weeks ago because just 220 Indian entities have legal linkages in China.
• However, the outbreak has now turned into a pandemic and cases are reported in over 163 countries. Over 2,141 Indian entities have legal linkages in the USA alone. 
• From a trade perspective, the implications for Indian companies are widespread. The countries most affected by COVID-19 together account for almost 50% of India’s exports and 50% of India’s imports.
• While the outbreak is forcing several business closures around the world, there are positive signs in China. More than three-fifth of the surveyed companies have resumed operations across China.
• COVID-19 outbreak poses several organisational risks – supply chain, operational, financial and market. The sheer size of the shock interconnects all these risks making companies vulnerable to knock-on effects.
• The impact of COVID-19 outbreak will be disproportionate – while some sectors will be severely impacted, some will see a positive impact.
• Companies need to craft a Business Continuity Plan (BCP) and stress test their contingency strategies.