What a difference a few months can make! Just nine months ago ‘infectious disease’ was a term used only in medical circles. Today, the spread of infectious diseases ranked number one amongst Asian business risks, according to a new report from the World Economic Forum. Compare that to 2019 when ‘natural catastrophes’ topped the risk list. <img src="https://insidefashionlive.net/wp-content/uploads/2020/10/ibr4Q-no-one-saw-it-coming-1-1024x606.png" alt="" loading="lazy" srcset="https://insidefashionlive.net/wp-content/uploads/2020/10/ibr4Q-no-one-saw-it-coming-1-1024x606.png 1024w, https://insidefashionlive.net/wp-content/uploads/2020/10/ibr4Q-no-one-saw-it-coming-1-300x178.png 300w, https://insidefashionlive.net/wp-content/uploads/2020/10/ibr4Q-no-one-saw-it-coming-1-768x455.png 768w, https://insidefashionlive.net/wp-content/uploads/2020/10/ibr4Q-no-one-saw-it-coming-1-750x444.png 750w, https://insidefashionlive.net/wp-content/uploads/2020/10/ibr4Q-no-one-saw-it-coming-1-1140x675.png 1140w, https://insidefashionlive.net/wp-content/uploads/2020/10/ibr4Q-no-one-saw-it-coming-1.png 1240w" sizes="(max-width: 1024px) 100vw, 1024px" width="1024" height="606"> Globally, ‘unemployment’ was seen as the biggest risk, with ‘infectious diseases’ ranked second. “The employment disruptions caused by the pandemic, rising automation and the transition to greener economies are fundamentally changing labour markets,” said WEF managing director Saadia Zahidi. The survey, which was produced in partnership with Zurich Insurance and Marsh & McLennan Companies, included the input of over 12,000 business leaders from 127 countries who were each asked to determine “the five global risks that you believe to be of most concern for doing business in your country within the next 10 years.” <img src="https://insidefashionlive.net/wp-content/uploads/elementor/thumbs/Vo3nJ-risky-business1-ox5kdcdpgg6e8gqx369159190beiggp57o0hjtqniy.png" title="Vo3nJ-risky-business(1)" alt="Vo3nJ-risky-business(1)"> For the apparel and footwear industries, the most pressing risk is likely to be need for even more agile and more resilient supply chains. When facing unstable market conditions, managing that supply chain will require tremendously skilled professionals with hands on experience in global markets. Then there is also the impact on order size and price that could result from high levels of unemployment in key export markets. The pandemic is distracting businesses from the long-term risks that will remain once the current crisis is resolved, according to Peter Giger, Zurich Insurance group chief risk officer. <h3><strong>Preparing - for Anything and Everything</strong></h3> In the previous decade companies have shifted towards a ‘just in time’ model. Going forward the focus will be on ‘just in case’, according to Barclays. This is being supported by diversifying supply chains, beyond the ‘China plus One’ model. Looking ahead, sourcing is likely to be increasingly fragmented as buyers evaluate countries based on typical criteria (costs, efficiency, infrastructure, etc) as well as new concerns such as ability to contain a pandemic. “The COVID-19 crisis has shone a spotlight on organisational resilience. As firms look to the future, they are matching their risk and resilience arrangements with a threat landscape marked by significant customer ands workforce behavioural shifts,” said John Doyle, Marsh president and CEO. “To optimise recovery, organisations will need to build greater preparedness into their business models in order to be more resilient in the face of future disruptions.” <h3><strong>From Highly Mobile to Work-from-Home</strong></h3> Rising production costs, fewer migrant workers, less travel, and the need for social distancing, could all boost automation and digitisation in a post-COVID world, according to Barclays. Working from home accelerated the use of technologies that were previously feasible but not widely adopted. However, the possibility of remote working is not uniform across industries and countries. Travel bans have also gotten companies used to using digital technologies, as well as enjoying greatly reduced travel budgets. Business travel is unlikely to return anywhere near pre-COVID levels, even after travel bans are lifted, said Barclays.