The aftermath of COVID-19 has brought a heightened urgency for Business Continuity (BCM) and Risk Management (RM) professionals in Saudi Arabia. Key transformations include:
This is a summary of the presentation by Ruwaid Ali Ajaj, Chief Risk Officer of Deutsche Gulf Finance, Riyadh, KSA, at the Meet-the-Expert Webinar on 13 April 2023.
The presentation's theme is "An Evolving BCM and Risk Management Practice Post COVID: A Saudi Arabia Perspective."
Like the rest of the world, Saudi Arabia faced significant challenges during the COVID-19 pandemic. However, the country was particularly affected by the sharp decline in oil prices, given its status as one of the largest oil producers globally. In response to this crisis, the Saudi government prioritised the well-being of its people, emphasising that "people come first" in times of disaster or crisis.
This commitment laid the foundation for the government's comprehensive response to COVID-19, locally and globally. In this seminar, the speaker will discuss the strategies and long-term objectives adopted by Saudi Arabia to manage risk and ensure business continuity amid these challenging circumstances.
The pandemic forced organisations in Saudi Arabia to rethink their approach to risk management and business continuity. What was once considered a compliance requirement evolved into a critical system integral to achieving an organisation's strategy and value. The local and global business community realised the importance of maintaining critical services and sustaining operations during abnormal scenarios.
Consequently, both the government and private sector in Saudi Arabia embarked on initiatives to embed a culture of risk management and business continuity within organisations. Awareness sessions, forums, seminars, and workshops became essential tools for educating individuals and enhancing organisational resilience. Many organisations established dedicated business continuity functions, often with the support of their boards of directors.
In light of the post-COVID-19 landscape, Saudi Arabia is witnessing a transformation in its risk management and business continuity approach. Adopting remote working practices, which proved crucial during the pandemic, is becoming a standard part of employment contracts, further strengthening business continuity. Regulatory bodies and authorities have introduced guidelines and frameworks to enhance organisations' business continuity efforts.
These initiatives are aligned with Saudi Arabia's Vision 2030, a transformational agenda launched in 2016, which recognises the critical role of business continuity in achieving sustainable economic growth. The country's digitalisation efforts, including digital health and education platforms and online government services, have accelerated since the pandemic, shaping the business landscape and changing people's behaviours, such as the shift towards cashless transactions. Saudi Arabia's response to the pandemic has underscored the importance of resilience and adaptability in today's global environment.
Saudi Arabia's response to the challenges posed by COVID-19 extended beyond traditional crisis management. The Central Bank of Saudi Arabia played a pivotal role by lowering interest rates in March 2020. It continued to do so over the next two years to stimulate market liquidity and support businesses. Additionally, the government addressed the needs of the non-Saudi population, which constitutes a significant portion of the country's residents.
To facilitate their mobility during lockdowns and flight restrictions, the government extended exit and re-entry visas for non-Saudis at no cost. For those who lost their jobs during the pandemic, the government introduced the Sonnet program, offering temporary financial support for six months. These measures exemplify Saudi Arabia's commitment to supporting its residents and the broader business community during challenging times.
The impact of COVID-19 on Saudi Arabia extended to religious pilgrimages, notably Hajj and Umrah, which hold immense significance for the country. In response to the pandemic, Saudi Arabia temporarily suspended the issuance of visas for these religious journeys, leading to an unprecedented halt in these annual events. The holy mosques typically thronged with millions of pilgrims, stood eerily empty. Gradually, the government reopened these religious seasons, initially limiting participation to residents before returning to a sense of normalcy.
This disruption to religious tourism had a second significant impact on the country following the decline in oil prices. It demonstrated the government's willingness to prioritise public health over economic considerations.
Saudi Arabia recognises that global uncertainties continue to loom, making proactive risk management and business continuity essential. Cyber risks are a significant concern, given the world's increasing digitalisation post-COVID-19.
Additionally, economic challenges such as debt, inflation, and insolvency have emerged as significant consequences of the pandemic. The banking sector's vulnerabilities underscore the importance of prudent risk management practices. Lastly, geopolitical events, such as conflicts in regions like Korea, pose potential threats to the global economy, including oil markets. The need for preparedness and collaboration on a global scale is emphasised, especially in the face of potential pandemics.
While a single standard for business continuity post-COVID-19 may have its challenges due to varying capabilities and pandemic circumstances among nations, a customised approach based on each country's maturity level and active COVID-19 cases could facilitate international cooperation and response efforts, underscoring the importance of saving lives as a collective goal for the world.
Saudi Arabia's multifaceted response to COVID-19 reflects its commitment to mitigating risks, safeguarding public health, and fostering resilience within its economy and society. These strategies offer businesses and governments worldwide valuable insights as they navigate an increasingly uncertain future.
The presenter marks a suitable time for reflection on the insights regarding business continuity management (BCM) and risk management. While the discussion touched on broader national strategies, it also offered valuable takeaways for organisations and professionals in the field. One crucial theme that emerged was the significance of placing "people first" during a crisis, a principle emphasised by the Saudi government. This principle underscores prioritising human welfare and safety when crafting BCM and crisis management strategies.
The seminar shed light on the pivotal role played by government interventions in supporting businesses and maintaining economic stability. The Saudi Central Bank's measures, such as lowering interest rates and offering financial assistance programs like the Sonnet initiative for jobless individuals, exemplify how governments can ease the financial burden on organisations and individuals during challenging times. These actions aid businesses in sustaining operations and contribute to overall economic resilience.
Moreover, the webinar highlighted the need for continued vigilance and adaptation in the ever-evolving landscape of BCM and risk management. The discussion touched on the global cybersecurity threat, emphasising that organisations should prepare for cyberattacks and focus on effective incident response. It also emphasised the importance of maintaining business continuity in the face of digital disruptions, highlighting that businesses must remain resilient even when their physical offices are inaccessible.
The presenter underscored the value of contextualisation in implementing BCM and crisis management, recognising that while standardised processes are essential, they must be tailored to fit each country or organisation's unique political, cultural, and operational realities.
As the presenter concludes, it is evident that the COVID-19 pandemic has reshaped the landscape of business continuity management (BCM) and risk management. Many participants have shared valuable insights and experiences during these unprecedented times. One key takeaway is the newfound emphasis on physical health and well-being.
With the pandemic prompting more exercise and healthier living, individuals and organisations have recognised the importance of maintaining good health as part of their BCM strategies.
Another notable development is the increasing adoption of remote working as a vital BCM tool. While initially employed as a response to the pandemic, remote working is now becoming a permanent feature in many organisations across Asia. This shift reflects the acknowledgement that remote work enhances business continuity and provides employees with flexibility and work-life balance. As some regions transition into an endemic phase of the pandemic, organisations are urged not to discard remote working but to leverage it as a sustainable and resilient solution.
Furthermore, participants have identified supply chain challenges as a significant pain point during their BCM journey in the pandemic era. Disruptions in the global supply chain have affected businesses worldwide, highlighting the need for robust supply chain management and collaboration among governments and countries to ensure a smooth flow of goods.
The financial industry, in particular, received special attention and support from central banks, with measures such as deferral programs, lowered interest rates, and financial assistance initiatives to alleviate the financial strain caused by COVID-19. These tailored approaches underscore the importance of sector-specific solutions in addressing unique challenges.
The COVID-19 pandemic has propelled BCM and risk management to the forefront of organisational priorities. Lessons learned, including a renewed focus on health, the integration of remote work, and supply chain resilience, will shape future BCM strategies. Additionally, the financial industry's experience serves as a reminder of the importance of sector-specific considerations in crisis management. Organisations are encouraged to adapt and remain agile as they navigate the evolving landscape of BCM and risk management.
In a recent session on business continuity management (BCM) and risk management, valuable insights emerged from Saudi Arabia, shedding light on the rapid digitisation of the country's government services. Amid the COVID-19 pandemic, Saudi Arabia swiftly escalated its digitisation efforts, making approximately 90-95% of government services available online. This transition underscores the adaptability and resilience of organisations in response to crises, with the digitisation of services serving as a crucial element of their BCM strategies.
Audience questions delved into the regional perspective, particularly within the Gulf Cooperation Council (GCC) countries. While specific reviews of BCM and crisis management performance across the GCC were not discussed, the session emphasised the central role of government authorities and regulators. For instance, Saudi Arabia's Central Bank enforces stringent BCM measures, including testing, exercising, awareness, and training, ensuring that financial institutions maintain a certain level of maturity in BCM practices. Such regulatory oversight contributes to the overall performance and preparedness of BCM in the GCC region.
The session also touched on cybersecurity, a critical aspect of BCM and risk management. Despite the challenges posed by the pandemic, Saudi Arabia exhibited robust cybersecurity measures and vigilance. The country strongly emphasises cyber resilience, with a 24/7 high-alert Security Operations Centre to monitor online and physical activities. Cybersecurity awareness and multi-factor authentication were also reinforced to enhance protection against cyber threats. The proactive approach to cybersecurity demonstrates its vital role in safeguarding organisations during crises.
In closing, this webinar provided valuable insights into BCM and risk management on the following:
Dr. Goh Moh Heng moderated and transcribed the session.
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