Risk and crisis management - an entrepreneurial duty in uncertain times and the need for modern risk governance

Global Competitiveness as a Strategic Framework for Resilience

In a world full of dynamic changes and growing challenges, from geopolitical tensions to disruptions in global supply chains and economic uncertainty, our companies are faced with the task of not only securing their stability, but also actively shaping their future. This requires more than traditional crisis management measures; above all, it requires companies to be creative, adaptable and make targeted use of their own resources.

Today's environment requires strategic forward thinking and modern risk governance, which also means relying on strong corporate resilience. Companies must not only secure their own future, but also act as responsible players in a globally networked system.

The strength of a company and one of the central factors of corporate resilience lies in the talents and skills of its employees. Language skills, technical expertise and interdisciplinary skills are key success factors that go far beyond mere crisis management. They enable companies to react flexibly to unexpected scenarios, anticipate international market changes and remain capable of acting even in times of uncertainty.

However, supervisory boards should also evolve from a “passive” control body to strong active strategic decision-makers to manage global risks and companies should ensure that their management bodies also have the appropriate technological expertise. Move away from static reports to dynamic risk models to enable faster adaptation. Scenario analysis and crisis prevention should not only be/become a core issue for companies, but also for their supervisory boards.

Trade conflicts, especially customs disputes, naturally also affect global supply chains and corporate strategies, just as international sanctions and political instability make long-term investment decisions more difficult. Companies are increasingly exposed to attacks by cybercriminals and state-controlled hacker groups, meaning that data protection and IT security should be integrated much more strongly into governance strategies. Targeted measures in risk and crisis management can not only minimize disruptions, but also identify new opportunities and make sensible use of them. The ability to react flexibly to uncertainties and incorporate the strengths of the company's own workforce is crucial and contributes to its continued international competitiveness.

The following conceptual ideas and approaches provide inspiration for companies facing the challenges of our time in order to increase their own resilience and at the same time create opportunities from uncertainty.

Safety and responsibility go hand in hand, not only to “survive”, but also to grow and inspire each other.

Risk and crisis management should never just be a “side note” in your company, but an important part of a strong strategic heart of EVERY company. The recent crises have certainly exposed some of the weaknesses of many companies and the pandemic has also shown us all how vulnerable international supply chains and our healthcare systems are.

Crises are not surprises – they are a constant part of our reality. 

The following also applies in the corporate world: “Innovation does not always have to mean leaving the old behind.” Instead, the strength often lies in falling back on tried and tested foundations, adapting them in a progressive, optimized way and combining them with modern thinking and action.

Risk and crisis management is not just a security measure - it is a strategic necessity for companies. Companies need to move from reactive approaches to proactive risk governance.

Companies should not just passively survive crises, but must also actively develop innovative solutions!

Traditional risk governance is no longer sufficient ...

In 2025, governance models should not only be based on the past, but on more agile decision-making processes, i.e. companies should also anticipate new scenarios, for example through wargaming strategies and crisis simulations, in order to be able to react quickly to market changes (inflation, market volatility and liquidity risks).

Already thought about and implemented much of this?

• Has your crisis management already comprehensively considered and expanded various scenarios for possible upcoming conflicts and geopolitical tensions, including hybrid threats from disinformation and cyber attacks? Test your contingency plans not only on paper, but through realistic simulations with wargaming to identify real vulnerabilities.

• Are the existing emergency plans developed "only" for natural disasters or IT crises or have potential political conflicts already been adequately considered? 

• Are your supply chains sufficiently diversified? And beyond the experiences already gathered during the COVID-19 pandemic, have geopolitical risks been specifically taken into account?

• Are your internal communication systems already optimized, robust and fast? Clear and reliable internal communication can make the difference between chaos and an orderly response. The introduction of a centralized crisis information system would help to inform employees in good time and facilitate decision-making.

• Have international dependencies been critically analyzed and assessed sufficiently? Many companies are heavily dependent on international markets, whether through suppliers or customer relationships. It is essential to carry out a comprehensive assessment of these dependencies and identify potential vulnerabilities. Also consider possible multinational cooperation for resilient supply chains to avoid bottlenecks and extensive investment in sustainability strategies to be less dependent on volatile commodity markets in the long term. Platforms for the joint distribution of resources in times of crisis could then better cushion potential supply chain failures.

• Is the security of your corporate data adequately prioritized? After all, this data is at the heart of modern companies and therefore also a target for cyberattacks. In today's world, it is essential that supervisory boards also have sufficient digital skills to be able to assess the risks accordingly, i.e. to prioritize data and IT security strategies absolutely and to invest more in employee and management training on digital (overall) resilience.

• Is the flexibility and mobility of your employees sufficiently promoted? In uncertain times, sudden relocations or remote work solutions could become the norm.

• Are global crisis trends already being sufficiently analyzed and anticipated? Companies should expand their market observation beyond economic factors and actively monitor geopolitical developments, as international sanctions and massive political instability can lead to long-term investment uncertainty. Prepare yourself to react strategically to potential trade conflicts.

• Are community and social responsibility sufficiently strengthened? Companies should think beyond their own boundaries and engage more actively in their local communities. Whether through supporting municipal disaster protection measures or promoting educational initiatives, these activities not only enhance local resilience but also build trust in your company.

• Is the psychological resilience of your leaders sufficiently developed? The mental and emotional skills of decision-makers are crucial when it comes to making clear and rational decisions in crises. Companies should offer targeted training to strengthen the psychological resilience of their managers and prepare them even better for possible high-pressure situations. Real-time stress simulations are one way of mentally testing and training your managers in emergency scenarios.

• Is a strategic energy supply sufficiently secured? Conflicts can have massive impacts on energy supply.

• Are your evacuation plans and safety networks sufficiently developed? Companies with international locations or employees in high-risk areas must develop evacuation plans for emergencies. These plans should include clear responsibilities, defined safe locations and communication channels. Additionally, partnerships with security companies or NGOs can help prepare for such scenarios and enable rapid responses.

• Have the emergency skills of employees already been sufficiently developed? In addition to employee protection and training, there should also be a focus on fostering specific emergency skills among employees. These include for example, knowledge of first aid, basic crisis communication skills or the ability to devise improvised solutions in exceptional situations. Building such competencies not only enhances individual safety but also increases the resilience of the entire company.

• Robust financial planning and liquidity reserves? Geopolitical crises can lead to unforeseen expenses, such as production disruptions, rising raw material costs or currency instabilities. A solid financial strategy and adequate reserves are indispensable to navigating such challenges effectively and ensuring long-term stability.

• Protection of your intellectual property – All set? In uncertain times, the risk increases that sensitive intellectual property (such as patents, innovation data, product developments or trade secrets) becomes a target for cyberattacks or industrial espionage. Implementing robust protective measures and continuously monitoring for potential threats are crucial steps in safeguarding your competitive edge.

• Cultural sensitivity and conflict management adequately established? In times of conflict, tensions between multinational teams or locations could arise. Companies must ensure that they have structures in place to address cultural sensitivities and detect conflicts early. Promoting mutual understanding, offering training on intercultural communication and fostering an inclusive environment can make all the difference in maintaining harmony and collaboration.

• Rethinking sustainability strategies is a crucial step! A conflict can highlight existing dependencies on global resources in stark terms. Companies could seize this opportunity to review their sustainability strategies, emphasizing local production, circular economy practices and resource efficiency. This approach not only bolsters resilience but also enhances independence during crises, turning challenges into pathways for innovation and stability.

• Is communication with customers and partners already sufficiently strengthened? During crises, clear and transparent communication is vital to maintaining trust and avoiding potential panic. Companies should develop strategies to stay connected with customers and business partners in conflict situations, providing credible information to reduce uncertainties and foster confidence. This can be achieved through regular updates, establishing dedicated communication channels and ensuring the consistency of messages across all platforms.

• Recognizing innovation potential in crises! Crises often bring new demands, but they also create opportunities — this must not be forgotten. Companies could consider how to flexibly allocate their resources to respond to changing needs, such as by developing new products and services that are highly sought after in a crisis-prone environment. Harnessing these moments of transformation can not only address immediate challenges but also pave the way for lasting growth and resilience.

• Strengthening local networks and partnerships is a powerful strategy! In times of crisis, regional networks and partnerships often have the greatest impact. Companies could focus more on collaborating with local authorities, organizations or other businesses to support one another and build collective resilience. Such efforts not only enhance crisis response capabilities but also foster a sense of community and mutual trust, creating a foundation for long-term stability and cooperation.

• Preparing for disruptions in transport routes is essential! Companies should proactively develop strategies to leverage alternative logistics routes. This might involve partnerships with regional transport providers or the implementation of multimodal transport solutions that combine air, sea and land routes. Such approaches not only enhance flexibility and reliability but also reduce the risk of critical delays during crises. By planning ahead, businesses can ensure smoother operations even in the face of unexpected challenges.

• Are plans for potential economic setbacks sufficiently developed? Companies should conduct extensive scenario simulations to identify strategies for reducing costs, adapting business models and quickly unlocking new revenue streams during a recession. Proactive planning could include diversifying product offerings, exploring digital transformation opportunities and fostering innovation to remain competitive and resilient even in challenging economic conditions.

• Stockpiling spare parts and production resources is a prudent measure! Beyond critical supplies like medicine and food, companies should consider creating reserves for spare parts and production materials. Supply chain disruptions can lead to rapid production halts, but strategic stockpiling can significantly mitigate these risks. This foresight ensures that operations can continue smoothly even in the face of unexpected interruptions.

• Strengthening the legal defense! In uncertain times, legal risks such as liability issues or disputes with business partners may escalate. Companies should review and update their legal strategies, ensuring contracts are clear, enforceable and aligned with current circumstances. Building strong relationships with legal advisors and maintaining a proactive approach to potential disputes can safeguard the organization against unforeseen challenges and promote stability.

• Establishing partnerships for joint security solutions is a powerful approach! Companies could form alliances or partnerships to collaboratively develop security measures, such as regional safety networks, shared storage facilities or protection strategies for critical infrastructure. Working together not only pools resources and expertise but also enhances preparedness and resilience against potential risks, ensuring that vulnerabilities are addressed collectively and effectively. This strategy strengthens the security framework while fostering trust and cooperation among organizations.

• Organizing civil protection exercises with employees and partners is an excellent initiative! By collaborating with authorities and organizations such as the Technisches Hilfswerk (THW) or local disaster protection agencies, companies can play an active role in strengthening emergency preparedness. These exercises not only enhance onsite safety but also integrate the company more deeply into the regional security infrastructure. Building such connections fosters trust, ensures seamless coordination in real emergencies and contributes to the overall resilience of the community and the business alike.

• Developing and regularly testing a crisis manual is indispensable! A comprehensive manual, containing emergency protocols for various threat scenarios, should be a staple in every company. It must define clear responsibilities, communication channels, and decision-making processes. However, creating such a manual isn't enough — it's crucial not to let it “disappear” into a drawer. Regular exercises and tests should be conducted to keep the manual updated and adaptable, ensuring its relevance and effectiveness in real-world scenarios. Consistent practice fosters preparedness and builds confidence across the organization.

• Building communication skills in crisis situations! Effective communication is crucial in emergencies. Employees should be trained to communicate clearly, quickly and purposefully, both internally and with external partners and authorities.

• Handling digital tools and crisis software! In today's work environment, digital tools are indispensable for crisis management. Employees should gain comprehensive knowledge in using software that facilitates emergency communication, monitoring or coordination. By mastering these tools, teams can respond more efficiently and effectively during critical situations, ensuring streamlined operations and minimizing disruptions.

• Training resource utilization skills collaboratively! Employees and leaders could be trained to efficiently utilize available resources within the company — be it medical supplies, physical spaces or digital networks. This joint approach not only enhances operational efficiency but also fosters teamwork and a shared sense of responsibility, ensuring that resources are maximized effectively, especially in critical situations.

• Training the fundamentals of self-protection is crucial! The ability to safeguard oneself and others in dangerous situations, such as through knowledge of protective equipment or defensive behaviors, can make a significant difference during crises. Building these skills empowers employees to act confidently and effectively, enhancing overall safety and resilience within the organization. Proactive preparedness in this area ensures that individuals are better equipped to handle emergencies with composure and precision.

• Expanding first aid skills! In addition to basic first aid knowledge, employees could also be specifically trained in advanced skills such as wound care, resuscitation and the use of medical equipment like defibrillators. Advanced training should include treating trauma or shock conditions. Establishing access to professionals trained in trauma management can help protect the mental health of employees and leaders. Additionally, maintaining a supply of medications for treating injuries or other health issues during crises is essential. Employees should also be encouraged to create personal emergency plans for their families to better coordinate their own safety.

• In many modern corporate buildings, the focus often leans heavily toward digital technologies and networks, potentially overlooking simple yet effective solutions like emergency radios. This oversight could prove to be a vulnerability, especially in crises where digital infrastructure might become unavailable due to power outages, cyberattacks or other disruptions. Emergency radios could be strategically positioned in safety rooms, reception areas or facility management stations. These radios can be integrated into a comprehensive crisis plan and used alongside other emergency tools like walkie-talkies. Training sessions on the use of emergency radios can raise awareness about their significance and provide employees with a sense of security, ensuring they're prepared to act confidently during critical situations. Leveraging such basic yet reliable tools contributes to a well-rounded and resilient crisis management strategy.

• Language skills are essential! An internal database could record the language skills of all employees, including their proficiency levels (e.g., basic, fluent, native, business proficient). Companies could form teams with specific language competencies to support communication in crisis regions or during diplomatic negotiations..

• The establishment of multifunctional safe rooms — not only for protection against physical attacks but also for maintaining business continuity in the event of disruptions. These rooms could serve as centralized crisis hubs, integrating both digital and physical security solutions.

• Sanitation facilities and water supplies are essential topics that are often overlooked in crisis preparations but are of critical importance, particularly in extreme situations.

Here are some considerations:

- Companies could have portable toilets (e.g., chemical toilets) or mobile sanitation units available as emergency solutions. These could be especially useful during building outages or evacuations.

- Hygiene kits for employees/leaders: Including disinfectants, soap, disposable gloves, wet wipes, menstrual hygiene products, and tissues. These kits could also be stored in safe rooms to maintain hygienic conditions.

- Waste disposal during a crisis: If regular wastewater systems fail, simple bucket toilet solutions with chemical additives could be utilized to minimize odors and facilitate disposal.

- Education on hygienic practices: Employees should be trained on how to maintain basic hygiene measures in an emergency to prevent infections and illnesses.

• Water storage bags and drinking water management

- Establishing emergency water reserves: Companies could store drinking water-safe storage bags or canisters in safe rooms. These bags are easy to transport, space-saving and can be hygienically stored for extended periods.

- Regularly checking water supplies: Water reserves should be inspected periodically and replaced as needed to ensure quality. Additionally, water purification tablets or portable water filters could be made available.

- Decentralized drinking water stations could be installed in buildings or safe areas, functioning independently from the main water supply, such as tanks or reservoirs.

- Companies could implement simple solutions like rainwater collection systems, which can be used in emergencies and purified through filtration systems.

• A potential on-site water purification approach:

- Companies could install small water treatment systems or filters to make rainwater or contaminated water drinkable in emergencies. These filters could also be provided as portable devices.

• Ensuring access to sanitation facilities for everyone: Companies should also ensure that employees with limited mobility have access to emergency sanitation solutions, such as barrier-free toilets or easily accessible water stations. This inclusivity reinforces comprehensive preparedness while safeguarding the needs of all individuals.

• Reserve supply for prolonged outages: For extended emergencies, companies should develop a strategy to regularly replenish sanitation equipment and water reserves, such as through partnerships with suppliers or regional emergency networks.

• Waste management in emergency situations: Handling waste during a crisis is equally important. Mobile waste storage or disposal systems could be developed to maintain hygiene. Compostable waste solutions could also be considered, particularly during prolonged outage periods.

• Communication of hygiene measures: A clear and simple hygiene plan should be communicated to all employees to ensure everyone knows how to use sanitation facilities and water supplies. This helps prevent misunderstandings or overuse of resources.

• Considering employees' families: For companies developing long-term emergency plans, it might be beneficial to include solutions for employees' families, such as additional water packages or hygiene products for personal use.

• Testing emergency sanitation concepts: Companies could conduct regular tests or simulations to ensure the provided sanitation facilities and water supplies function effectively and are sufficient during a crisis scenario.

Your benefits?!

Even during crisis situations, employees can remain operational and safe when water and hygiene are ensured. It's reassuring for employees to know that their company is well-prepared for potential disruptions. This not only increases overall resilience but also boosts loyalty and a sense of security.

Often undiscovered valuable potentials

Some companies overlook the immense potential hidden in the hobbies and leisure activities of their employees. Valuable skills might lie dormant, which could make a real difference during crises or special challenges. Employees may develop abilities in their free time that prove useful in emergencies, such as first aid, mountaineering, craftsmanship, navigation or radio communication. Through their hobbies or club activities, employees might have built valuable networks that could be utilized in emergencies (e.g., connections to rescue services or voluntary organizations). Recognizing the diverse talents of employees can strengthen appreciation and a sense of community within the company. Employees might also initiate projects that incorporate their leisure skills into the workplace, such as offering internal courses or contributing to the development of emergency and safety systems.

Possible potentials that might remain undiscovered ...

- Employees knowledgeable in outdoor activities such as camping, orientation (practical skills in using light or mirror reflections for communication in emergencies), survival training, climbing and altitude courses, water sourcing, weather and climate, astronomy and navigation training, improvised energy supply or wilderness survival.

- There might also be arts, design and storytelling skills to uncover that could prove valuable in internal communication or problem-solving.

- Employees who, through their travels or other personal interests, might possess rare language skills or have taken courses in intercultural communication.

- Tinkerers, "gearheads" and tech enthusiasts could use their craftsmanship or technical skills to develop potential solutions when needed. Technical and repair courses are a part of their leisure activities.

- Perhaps there are employees who actively participate in disaster relief, firefighting or emergency medical services during their free time.

- There might even be a radio amateur in your company or employees who spend their free time engaging in crisis simulations using Virtual Reality (VR).

- There could also be employees who are active in cycling sports, work as bike couriers in their free time or have even completed self-defense courses.

- Perhaps there are employees who enjoy cooking and can "create" something delicious from limited ingredients or someone who is skilled in creative crisis management through art.

- Perhaps there are employees who have participated in cybersecurity workshops or drone training in their free time and are highly tech-savvy in this regard.

- Perhaps there is someone who is knowledgeable in the use of crowd-sourcing and has already attended workshops on the topic.

- Perhaps employees have privately attended stress management and resilience workshops, negotiation training, conflict resolution/management workshops, psychological first aid workshops or meditation and mindfulness sessions, which can be of great importance in crisis situations.

- Perhaps there are employees with exceptional stenography or writing skills or who have attended courses on self-organization and time management, digital crisis communication or training on the use of AI, blockchain, robotics, geodata, sensors and IoT, gamification and automation.

- Perhaps there is someone in the workforce with expertise in architecture who could provide tremendous support in building temporary structures such as shelters or workspaces during crisis situations.

The creation of a competency atlas could serve as a valuable tool for quickly accessing the right and essential resources of employees and leaders during crisis situations. By identifying and organizing their unique skills and knowledge, this atlas ensures that critical capabilities are readily available and utilized effectively when they are needed most.