How can companies operating in an economic downturn ensure that they not only have a ticket to trade but also a ticket to stay in business?

Today we see that many companies are struggling. They need to reduce their capacity and costs and be proactive, systematic and innovative in order to make a profit and simply survive the crisis. The economic downturn makes a holistic approach to risk management more important than ever.

As the recession develops, the risk of having to lay off employees or even close operations down is rising. Simultaneously, internal and external stakeholders are increasingly focusing on whether or not companies operate in a socially and environmentally acceptable manner. The focus on corporate responsibility and reducing the effects of climate change is here to stay.

How to stay in business
In times of uncertainty, markets, consumers and other stakeholders will look for assurance that they can have trust and confidence in the companies they do business with. It will be imperative for businesses to have a long-term focus on demonstrating that they have corporate responsibility initiatives integrated into their strategy. Aligned with this, a continuous and systematic risk management approach will ensure sustainable operations.

In order to turn risks into rewards and stay sharp, robust and competitive, businesses must handle risks in a professional way. This also includes the management of supply chains. The deconstruction of supply chains, as well as ethical and environmental demands, will force companies to get in control and manage their supply chains in a proactive, responsible and sustainable manner.

Sustainable performance
The financial crisis has increased the need for trust and confidence, and thus also the need for independent, third-party certification and assessment services. DNV wants to be there for its customers to help them optimise their operations – including when times are tough. In this context, I believe that DNV’s strategy and services have never been more relevant. Through our Risk Based CertificationTM, DNV helps companies in a holistic and integrated way to manage their risks and ensure consistency, transparency and effectiveness through continuous improvements.

The Risk Based Certification process is increasingly becoming a powerful means to get on top of the risk picture and prepare businesses so as to ensure sustainable operations in a complex and new risk reality.

Bjørn K. Haugland
DNV Senior Vice President