Risk Managers Adapt to Remote Work as Productivity and Stress Loom as Key Concerns
New research from the Global Association of Risk Professionals (GARP) revealed that risk managers have successfully managed the transition to work-from-home due to COVID-19 but are facing challenges related to productivity and increased stress.
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“However, it’s clear there are still necessary improvements to be made on the work-life front. Professionals cannot be primed and ready to tackle risks that may arise if productivity, engagement, and stress-levels are suffering.”
GARP surveyed 250 certified Financial Risk Managers (FRM) to understand the effect the COVID-19 pandemic and remote work have had on both companies and risk professionals.
“The COVID-19 pandemic has highlighted how resilient financial firms must be to a range of systemic risk events,” said Chris Donohue Ph.D., managing director of the GARP Benchmarking Initiative. “The unprecedented pandemic is truly testing normal business risk management approaches right now.”
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Unsurprisingly, most (87%) risk professionals around the world are working remotely compared with only 2% prior to COVID-19. Though this unprecedented shift has created new challenges, technology isn’t one of them. Risk management functions and processes have experienced little drop-off; respondents were generally positive about their firm’s business continuity, communications, and ongoing risk management operations. Only a small fraction of respondents said their experiences with access to key data and systems (5%), cybersecurity issues (5%), business operations (4%), and firm communications (4%) had worsened as a result of remote work. And, 89% and 82% of respondents, respectively, found both risk and incident reporting to be functioning “as good or better” than prior to the pandemic.
Despite company-wide adaptations and successes in working from home, risk professionals reported experiencing a noticeable reduction in work-life balance. Respondents said they are working more, but at the same time, feel less productive and engaged. Though 60% of respondents admitted to working more hours now than before COVID-19, 44% also attested to a drop-off in productivity. In addition, 46% reported feeling more stressed out by their work than before, and 71% said their work hours have become more irregular.