Deutsche Bank, Allianz share key insights to post-COVID economic development, risk mitigation in SL

The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) organised a webinar on 21 August, which was attended by about 40 CEOs and CFOs of German companies in Sri Lanka.

Deutsche Bank Chief Economist for India and Sri Lanka Kaushik Das

Allianz Asia Pacific Technical Head of Property and Casualty Alan Smee

During the webinar an updated economic forecast of Deutsche Bank Research and COVID-19 related risk prevention measures were introduced respectively by experts of Deutsche Bank and Allianz from Colombo, Mumbai, and Singapore.

Deutsche Bank Chief Economist for India and Sri Lanka Kaushik Das noted that Sri Lanka has seen a quick recovery in mobility following the COVID-19 pandemic. Sri Lankan mobility, as measured by an index using Google Mobility Report data, fell to a record low in March/April due to the lockdown and has rebounded above the 80 mark in August. The base figure for the index was February with a value of 100.

According to Das, “With the Parliament and Presidency now both under the control of the SLPP party, it should help bring in political stability and allow the authorities to expedite economic agendas which are key to revive growth and preserve financial stability. Focus will now shift to i) the presentation of a full-fledged budget; ii) a possible program with the IMF and iii) Sri Lanka’s medium-term plan to nurse the economy back to normalcy.”

Allianz Asia Pacific Technical Head of Property and Casualty Alan Smee shared some insights on risks faced by enterprises. Talking about the new normal, he noted that the world at large is currently faced with a great deal of uncertainty stemming from geo-political issues, the increased incidence of cyberattacks and the COVID-19 global pandemic that has dealt a severe blow on both the health and economic fronts.

“I would like to thank the Delegation of German Industry and Commerce in Sri Lanka for giving me this opportunity to share my thoughts on risk and risk mitigation at this forum. We are all aware of the volatile times we operate in and how the COVID-19 global pandemic has made it even more challenging for us to do business,” said Alan. “While enterprises need to be nimble and quick in reacting to changes in the environment, they also need to constantly assess their exposure to the different types of risks and work on mitigating them, well in advance.”

He went on to apprise them of the possible devastating impact these risks could have on businesses, stressing on the need to plan on mitigating them effectively. This included risks related to business interruption, cyber security and exposure of a company’s directors and officers to claims arising from their decisions and actions. He shared several instances of how businesses had minimised their exposure through careful planning and proper risk management and insurance.