The only constant thing in this world is change, and that goes for people and businesses. Many industries have made steps to make agile business strategies that would help them overcome unforeseen difficulties. But are they enough to survive a crisis?
The question is now more relevant, as the world is now seeing environmental and social changes that threaten to destabilize markets and economies. The current health crisis is a prime example of how the world economy is precariously balanced. Here are some other challenges that any business should be ready to face at any time:
Some countries are prone to them, but any country can experience them. Earthquakes, volcanic eruptions, hurricanes, tornadoes, and floods are all inescapable since we live on an active planet. Your facilities could be compromised, including your data systems. Valuable information from your clients and partners could be lost, and to retrieve them would take considerable effort and costs.
In this age where information is power, a company should have IT solutions for any circumstance and create an offsite data backup system. Companies should also invest in insurance that would cover the expenses for the damage from such natural catastrophes.
The 2006 tsunami that hit Thailand and Sri Lanka showed how much damage an unexpected disaster could do. Not only were business structures wholly destroyed, but thousands of lives were lost.
Business scandals could involve product misrepresentation, financial scandals, or even the personal relationships of executives, especially if they give the company some advantage in their industry. The scandal that garners most outrage from the public is when a company is found lying about its products. Whether it is intentional or not, it takes all of a company’s public relations to make consumers trust them once again. Even if they recover some of their audience, it might still take years for the whiff of scandal to go away.
In 2015, Volkswagen found itself in such a situation. The controls on their diesel engines were set to misrepresent their emission levels. The car company’s stocks plummeted, and governments across the world investigated its executives and led to the resignation of its CEO. The company spent more than $19 billion to rectify the situation.
Injuries and accidents in the workplace are all possible, but the incidences can be lessened. One accident could ruin a company’s reputation, primarily if it affects workers or causes an environmental catastrophe. If a business is in the industrial or manufacturing sector, management should make sure that safety guidelines and rules are always followed. Personnel should always wear protective equipment in designated areas. Insist on a protective waiver or litigation insurance to protect your business from such unfortunate instances.
In these uncertain times, the only way a business can protect itself is to prepare for any possible event. But in a world where everyone is connected and tracked, the only preparation is to be transparent and honest in any business transaction, whether with partners or clients. Transparency and cooperation generate goodwill, and sometimes goodwill is the only thing that can save a company’s reputation.