Operating in a Difficult and Uncertain Environment

{ article }

Operating in a Difficult and Uncertain Environment

Clearly, we are in unprecedented times. Human tragedy, loss of life, loss of incomes, businesses not surviving, uncertainty and fear, are all current realities. These are all very difficult issues to deal with on so many levels. Presently, there is much that can’t be known, and there are many scenarios that could play out over time. Also, there is a strong possibility that the path that this current crisis takes may not even be one that we see or understand right now.

A natural reaction is to plan for the worst and hope for the best. However, it is important in our reactions, not to get rid of the things we need to navigate and survive the treacherous waters that we all are in.

Risk Management is a framework to help one understand the probability and distribution of outcomes relating to specific factors that are inherent in what one is measuring. Some of these factors or risks are systematic, and some are idiosyncratic or specific to an organization. This analysis can help gain an understanding of how uncertainty translates into risk. There are assumptions that drive this type of analysis which don’t always hold up. But still, going through this process can be useful.

General economic conditions are front and center and can be thought of as the big picture that you are left to deal with. And then, there is the aspect of how these economic conditions affect each organization. There is obviously a huge difference between operating an airline as opposed to a healthcare company, particularly in this environment.

Given these considerations, decisions will be made on how to allocate precious resources to cover critical functions so one can operate as best as possible. A very difficult task, for sure.

Organizations will be forced to have insight, in wildly uncertain times, on how to save money while dealing with the crisis. One reaction will be to move swiftly and stay in front of the risk. The danger comes from many angles leaving questions unanswered – Did I do too little? Did I do too much? Did I make the right choices when cutting resources to help deal with loss and uncertainty?

While we do not currently have a lot of information about the duration and magnitude of the current situation, we do instinctively and practically understand that it is profound and beyond our current imagination. There will be massive changes and adaptations that will need to occur. The pace will be intense, and the demands will be high to enact solutions. Technology will be one of the most important tools we have to come through this. Historically, technology is only as good as the processes it supports, so a thorough understanding of what needs to be accomplished is required.

In the end, we can only give it our best shot. As already mentioned, and worth repeating, careful analysis of how the current operating environment affects an organization is essential as decisions will have to be made about allocating scarcer resources. Organizations will have to do more with less while maintaining the integrity of their core processes and functions while dealing with a rapidly changing environment.

We at Navvia believe that IT Service Management is a critical capability that needs to deliver, now more than ever. Systems are stressed and organizations need to be agile in identifying and fixing problems as they arise. Navvia, an excellent tool for working remotely, helps organizations efficiently manage and run their IT Service Management Programs. We are currently offering free training and support to help our clients manage the challenges caused by the global pandemic.

Tony Richards, Chairman

As a seasoned finance and investment professional, Tony brings a complementary skill set to round out the Navvia management team. He has over 35 years of experience in finance, research and risk management.

• Posted by Tony Richards, Chairman on Apr 05, 2020
• Filed under Articles
• Tagged with

Share this post