By Dr. Arun Singh,
Chief Economist,
Dun & Bradstreet India
02nd Apr 2020

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.
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