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VID-19:
Short description

C ate

O
2

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Surviving
and thriving
through a
pandemic
COVID-19 Risk assessment survey

June 2020
home.kpmg/in/COVID-19
 Foreword
COVID-19 is a global pandemic that has impacted the entire world,
destabilised economies and severely affected organisations across
industries and geographies. This COVID-19 risk assessment
survey report is aimed at gauging the various impact points, which
organisations are facing today and through this assessment present
our point-of-view on what should organisations focus on, in order to
deal with this pandemic better and to emerge out of it much stronger.
Whilst the survey results largely indicate that organisations are
currently focused on activities that require immediate attention, our
belief is that organisations that view this calamity as an opportunity to
introspect, redefine their strategy, assumptions and way of working
will stand to benefit in the longer run.
We are thankful to all the professionals for their whole-hearted
participation in the survey and hope that the takeaways will help your
organisations, to not only survive but also to thrive in a post COVID-19
world.

Akhilesh Vijay
Tuteja Ashish Aul
Partner and
Head
Partner and Co-
Head Governance, Chawla
Risk and Compliance Partner and Co-Head
Risk Consulting Governance, Risk and
Services KPMG in
KPMG in India India Compliance Services
KPMG in India

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 Table of contents
Synthesising survey results 1

Emerging risk landscape 3

Impact of COVID-19: Key themes 5

1. Strategy refresh - Redefining resilience 6

2.Looking after the customers 7

3.Reinventing supply chain 9

4.Addressing liquidity and profitability concerns 11

5.Focusing on people and society 13

6.Technology - An eye on the future 15

7.Agility of governance, risk and compliance 17

Adapting to a new world order 19

Methodology 21

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 1 COVID-19: Surviving and thriving through a pandemic

Synthesising survey results

The pandemic has affected everyone at macro and micro levels. The global economy was already

Key themes and underlying areas of focus

weathering turbulence in 2019 and due to COVID-19 pandemic, the risk of a global recession is
high. There are disruptions in economic activities across the world as nations are fighting to
contain the spread of infection.

The risk assessment survey Strategy and growth

rolled out by KPMG in India was Revaluating business strategies to
targeted to assess the risks and focus on sustenance over growth
challenges brought to the fore
and organisations’ preparedness
of formulating and implementing Customers
mitigation measures to Enhancing customer value proposition,
effectively deal with the crisis getting closer to customers through
and its aftermath. digital channels, exploring new
The participants responded to business models and staying relevant
a structured questionnaire and
the responses were analysed to Production and operations
generate insights. Stabilising supply value chain via
collaborating with suppliers and
The survey revealed seven key extending them best possible support
themes and areas of focus under
which the results are classified
and detailed out within this Liquidity and profitability
report, providing insights on the Evaluating funding strategies and
themes which organisations are financial strength
focusing on.
Demand and supply factors
have impacted different sectors
differently. Also, organisations
People and society
Safeguarding of workforce and looking
with turnover of over INR
for new ways-of-working
5,000 crore seem to be better
prepared to deal with challenges
and risk mitigation, specifically
for risks related to workforce, Technology
customers, liquidity and Accelerating technological
profitability and technology. advancement and digital transformation
The survey provides guidance on
risk assessment and emerging
top ten risks Governance, risk and
compliance Restructuring and
refreshing enterprise risk management
framework

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 COVID-19: Surviving and thriving through a pandemic 2

survey has pointed out ten key risks arising out of the COVID-19 pandemic, which most organisations are expose

Employee safety and well-being

due to non-alignment of
Inability
operating
to resume
and selling
business
strategies.
operations
Economic
due to
downturn
compromised
induces
employee
reducedsafety
demandandand
well-being
change in
orcustomer
risk of employees
behaviour
getting
and prefe
infe

Liquidity concerns

disruptions and vulnerability arising due to suppliers/

Elongated
customers
cash-conversion
located in containment
cycles, inability
zones,
to collect
may lead
outstanding
to non-fulfilment
debts, leading
of demand
to liquidity and cas

Bus

Inadequate IT infrastructure and digitalisation of business processes to enable remote operations impacting business co
ding revenues combined with loss of market share due to price wars/new competition, all impacting the bottom line

k, reverse
Due tomigration,
accelerated
upskilling
use of remote
employees
access
within
technology
short durations
and inadequate
may result
network
in inability
security,
to cope
vulnerability
with a different
to cyberworking
threatsenvironment
have increased,
or enhanced
thereby inc
d

to monitor evolving risks leading to weak/

Risks
compromised
of frauds related
controls
to employees, vendors and customers due to change in process and working arrangem
ay result in disruption of business operations, reputation loss, impacting ability to generate and meet customer demand

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 3 COVID-19: Surviving and thriving through a pandemic

Emerging risk
landscape
The aforementioned ten risks are To have a holistic view of the based on the responses received
interconnected. They interact to risk environment in which an from the participants to KPMG
affect and influence each other. organisation operates, one COVID-19 risk assessment survey.
should not focus on single risk
In the diagram below, network The interconnectivity helps to
on an individual basis, as it may
analysis of the identified risks has provide guidance on the optimal
been depicted, which allows for trigger unintended consequences
way to mitigate threats in totality.
identification of ‘risk clusters’ with elsewhere in the overall risk
This means that some risks, when
cross dependencies and influences. environment.
addressed, will have the greatest
The interconnectivity between risks The risk clusters are combinations effect on mitigating other risks.
has been identified based on inputs of risks which are most likely to
The combinations identified have
from the subject matter experts. occur together by triggering each
been illustrated below.
other, in the event of one of them
occurring. The relative impact is
Relative Impact
Impact on sales
Liquidity
concerns Non-availability
of workforce
Supply Chain
Disruptions

Profitability concerns
Employee safety and
well-being

Frauds
Governance and
regulatory risks

Business discontinuity and

sub-optimal digitalisation
Cyber threats

Supply Chain Impact on Liquidity Profitability

Cluster 1 Profitability
Disruptions Demand concerns concerns

Employee Governance Non-

Supply Chain Fraud Profitability
Cluster 2 People safety and and availability of
Disruptions concerns
well being regulatory workforce

Business
discontinuity Cyber Supply Governance Profitability
Cluster 3 Technology and threats Chain Fraud and concerns
sub-optimal Disruptions regulatory
digitalisation
© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 COVID-19: Surviving and thriving through a pandemic 4

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 Impact of
COVID-19:
Key themes

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 COVID-19: Surviving and thriving through a pandemic 6

1 Strategy refresh - Redefining resilience

A crisis is never an isolated and contained incident and comes with extreme
levels of uncertainty. It is a situation that is generally beyond the experience
of most organisations. One of the critical aspects of managing any crisis by
an organisation is timely response to the situation by revisiting its strategy
in order to ensure that an organisation is in the best shape possible to
withstand what lies ahead.

Organisations need to rethink and refresh their strategies to respond to

disruptions across business, people, suppliers and customers. With
uncertainties hovering around economic recovery, leaders are acutely aware
that competition and entry of new players is inevitable, but the immediate focus
seems to be on survival.

Changing priorities
Objectives have changed from growth to sustenance
for the near term

72%
Re-evaluate their strategies to focus on
sustenance over growth: Organisations feel the
need to shift the short-term focus from growth to
sustenance as they anticipate top-line growth to
be stagnant coupled with increased competition. No, we do not foresee pursuing a select class of
customers

54%
Selective customer focus is not seen as a Yes, we have performed an assessment to find
key enabler: Organisations are trying to ensure out if our competitors are better prepared to deal
that no customer suffers and do not feel the with COVID-19
need for selective customer focus, except for a
few key players in consumer markets and
financial services. 51%
Profiling competitor strategy not a priority
but a need to thrive eventually: The immediate
focus may seem to be on survival and recovery. Yes, we have considered the case for an alliance
Respondents, however, continue to assess within and outside our sector

28%
competitors’ profiles in order to thrive eventually.
Respondents are also divided over alliance as
a strategy to mitigate the adverse effects of
COVID-19.
Source: KPMG in India’s COVID-19 risk assessment survey

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
54%
Respondents feel that a price-war in a post-pandemic scenario
may be imminent. The organisations that return to old ways of
doing business may lose the competitive advantage of
reimagining their business strategies in order to thrive eventually.

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 7 COVID-19: Surviving and thriving through a pandemic

g after the customers

Customer relationships are key for any business to survive and succeed.
s true for connections between people and brands. Consumers feel that organisations have lost touch with the h

These are the times when the ability

to predict and manage demand by
fortifying customer relationships and
placing importance on the bottom line
77% 82% 79%
is key. How organisations act today,
in the midst of the global crisis, will
influence how customers feel about
placing their business with them in the
future.
Customer servicing
Customers have significantly lowered
discretionary spending. These demand
shocks significantly lowered annual growth
estimates for most businesses. Also, virus
induced panic buying has resulted in
capacity constraints to meet increased
demand levels/inventory and severe shortage
of last-mile delivery capacity.
A resilient business adapts to evolving
customer needs and emerging new behaviours.
The current crisis will be a catalyst for
innovation in customer offerings, outreach and
unlocking greater levels
of customer experience and personalisation. Placed Identified Connected
For few businesses, virus induced panic buying high priority customer with
has resulted in capacity constraints to meet for needs for customers
increased demand levels/inventory and severe customer immediate/ and are
shortage of last-mile delivery capacity. servicing medium assessing
over the term/ long impact on
immediate term, organisation’s
term given the products
‘new and services
normal’ strategy
Source: KPMG in India’s COVID-19 risk assessment survey

Investing in the customer relationships in times of crisis will be repaid by lasting

customer loyalty. Organisations that maintain their ethics during such periods grow and

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 prosper.

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 COVID-19: Surviving and thriving through a pandemic 8

There is a need for new ways to connect with

customers, to predict demand, manage customer
interaction and to find ways to make digital more
human.
It is time to devise new customer engagement
strategies while prioritising their safety such as
proactive and accurate social messaging to
communicate measures which have been
implemented in order to rebuild trust.

Restructuring pricing strategies and delivery models

The businesses have to maintain discipline and remain careful to avoid ‘reducing price trends’ that happen
when organisations push sales using flexible return polices, terms and conditions, providing additional
services etc. to increase overall value proposition. Wherever there are opportunities to increase prices,
leaders should consider the long-term brand impact of such moves.

Yes, we have to reconsider pricing

strategies and delivery models considering
customers’ changed behaviour so that
consumption rebounds

New pricing and delivery practices:

Organisations are reconsidering current
customer and pricing strategies, current
Reconsidering pricing
strategies 71%
83%
delivery models and service plans, including
supply chain infrastructure and restructuring.
Considering impact on current
delivery models

Building sales muscle is a necessity: Yes, we are preparing our sales muscle to
Respondents feel that they are building sales combat changed market scenario
muscle through periodic communication with
the sales force around what the organisation is
doing and are also geared up to support their
needs.
Source: KPMG in India’s COVID-19 risk assessment survey
Building sales muscle
83%

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 The virus might disappear, but innovations will stay and reap benefits
in the future.

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 9 COVID-19: Surviving and thriving through a pandemic

g supply chain
ic on operations are very difficult to assess, but businesses need to begin aligning their operations and supply ch

Across several industries, operations an unemployment impact with reverse

have suffered the most due to the migration, putting many industries in
lockdown, impact of which will continue jeopardy in India.
to be felt in the months to come
Furthermore, organisations have
Moreover, nearly 52% of the struggled with maintaining high levels of
respondents feel that their production is workforce productivity. Respondents are
likely to be severely impacted. Due to reassessing their production strategies
the lockdown, domestic and and supply chain and embracing better
international supply chain ecosystems ways of functioning in the new normal.
have suffered badly. The widely
expected slowdown will have

Key areas

Lockdown and migration would impact labour availability the most, which is expected to
52%
severely affect supply chains
36% 12%
Respondent
were asked to rate areas expected to get largely
Next in line stands raw material manufacturers
dependent on cross-border suppliers who will find 41% 29% 30%
it difficult to resume supplies

Availability of labour will also be reflected in 34% 50% 16%

availability of sub-contractors

On a positive note, inter-plant dependencies 13% 26% 61%

may not be a key concern area
Source: KPMG in India’s COVID-19 risk assessment survey High Medium L

Participants’ profile — COVID-19 Risk assessment survey

respondents are already evaluating new ways of working for staff. They believe revised
71 %
‘Environment Health and Safety (EHS)’ protocols and social distancing will define the new normal

d looking for alternative/back-up suppliers for their key materials

ons. However, nearly 74
69%% of them also feel the need to support the existing suppliers by keeping the feedback channel live, understanding their ch

76% respondents have created an alternative source/back-up option for materials. Corporate
India seems to have de-risked itself well by maintaining a multi-supplier base

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 COVID-19: Surviving and thriving through a pandemic 10

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 11 COVID-19: Surviving and thriving through a pandemic

g liquidity and profitability concern

e to major re-structuring and re-positioning in global markets resulting from dipping revisions of economic grow
y in future development. It is now that India has elevated its fiscal policies and economic reforms to help cope

This pandemic has been characterised

by longer containment, worsening Impact on profits
financial markets and breakdown in Organisations have clearly predicted the impact
that COVID-19 might have on organisations’
supply chain, thereby impacting
profitability over the near term
revenue, inventory accumulation, stress
% Decline in profits
on cashflows and high cost for
maintaining liquidity. This has led
organisations to a predicament of
prioritising between short term liquidity
and long- term profitability. The
0 – 25 %
52%
organisations also have to balance it
with investment in upcoming
technologies, digitalisation, upskilling
25 - 50 %
31%
17%
workforce etc.
> 50 %

Source: KPMG in India’s COVID-19 risk assessment survey

Immediate financial and liquidity issues stand as a

major concern for organisations
The organisations need to work on identifying revenue streams and
perform scenario modelling. Organisations will have to focus on
Asset Liability Management (ALM) and perform ‘Stress testing’ to
evaluate its impact on profitability and cash flows

e already identified revenue Organisations

streams at riskhave
and also
performed
adopted
scenario
a strategy
modelling
to minimise
including
the resultant
re-evaluating
impact
various financial proj

71% 68%
© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 COVID-19: Surviving and thriving through a pandemic 12

The survey suggests that two top priorities

for organisations today are reassessing
spend capacity in existing segments and
evaluating ways to enhance liquidity in the
long run.

Evaluating the right means of enhancing liquidity

10% prefer
evaluating private
50% prefer
increasing present
The survey results equity and strategic banking Facilities
highlight that most investment
organisations have
evaluated their funding
strategies with increasing
existing banking facilities
being the most preferred
avenue
40%
manage liquidity from existing segments

Source: KPMG in India’s COVID-19 risk assessment survey

Finding the right balance between conservation and expenditure

Digitisation
g cash conservative in Controls
ations, however, also have a strategic plan of increasing their spend on certain key focus Employee
areas/ initiatives
45% Training

26% ERP

19% 10%
Source: KPMG in India’s COVID-19 risk assessment survey

on cash flows, additional liquidity drain is expected over a medium term especially on account of roll-over rates, delayed p

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 13 COVID-19: Surviving and thriving through a pandemic

society
mployee health, safety and mental well-being are important pillars for sustenance and growth. For organisations

Workforce is the backbone of every

Health and safety
organisation. When organisations
safeguard their people, they safeguard
their future. The first-hand perspective of
leaders from different industries in India
89%
of the respondents have developed
on the impact of COVID-19 on its people,
and communicated a working
revealed that majority of them have strategy as relevant during the
started working towards identifying, lockdown period and beyond,
developing and communicating working including remote working options
strategy to align with the new normal. and protecting the health of their
However, they have to work towards staff working on-site

84%
conducting capacity/ skills analysis over
medium to long term, which would
support in value creation.
of the respondents have set up
protocols, guidelines and helpdesks
to inform employees of the latest
news/updates relating to COVID-19

80%
identified a management team to
monitor the spread and progress of
the pandemic, across all
geographical areas

83%
reviewed health considerations
and insurance coverage for
their employees

Source: KPMG in India’s COVID-19 risk assessment survey

ees to society at large. Leaders and managers need to extend support, stand together, be empathetic and ensure transpare

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 COVID-19: Surviving and thriving through a pandemic 14

Workforce resilience Remuneration and skills Degree of preparedness

framework
While many organisations
considered the effects of current
situation on the Considered effect of the current situation on the remuneration structure of employees
remuneration structure of employees, they still
need to pay considerable attention to
capacity/ skill analysis. It is Conducted
time to identify
capacity/ skill analysis to identify possible underutilisation of human resources 75%
critical
roles with high exposure to infection (their
business continuity/succession plan in case
of a worst scenario), job rotation for
replaceable categories and identifying roles
which can be permanently work from
home. 50%

Source: KPMG in India’s COVID-19 risk assessment survey

s starts from providing safe working environment to its employees, who are first brand ambassadors and extends to network of custom

rganisations which participated in the survey have initiated social support programs as a response to COVID-19 situation in o

huge role in helping individual organisations find their way out of this crisis. Reinvention can generate a steep learning curv
remote ways of working, exploring new avenues for sustenance and growth; and changing the face of corporate resilience

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 15 COVID-19: Surviving and thriving through a pandemic

ye on the future
of employeeswwresulting in added pressure on existing technology infrastructure. The organisations have accelera

Technology landscape
respondents assessed
The technology landscape is looking promising
the technology landscape for
as it tends to move towards the new normal.
However, with changing environment, cyber
criminals are exploiting COVID disruption 86%
readiness in terms of technology enablement and capacity to
and attempting cyber-attacks in new allow remote working at the current productivity levels
work from home scenario. They are
using the increased digital footprint and respondents have started working on critical authentication controls
traffic to find vulnerabilities.

81%
for user access/physical access
enabled and assessed for offsite locations to accommodate the workforce at alternate locati

Source: KPMG in India’s COVID-19 risk assessment survey

to tackle increased risks of cybersecurity breaches and malware attacks, now that more people are working from home are vulnerable

Respondents are working towards

76%
developing processes to report cybersecurity incidents and are sensitising employees regularly on handling cyber incidents.

Source: KPMG in India’s COVID-19 risk assessment survey

engineering tactics are even more effective on distracted and vulnerable workforce. Fraudsters are aware of new ways of h
Organisations need to be resilient in the face of this storm to fight unparalled cyber security challenges

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 COVID-19: Surviving and thriving through a pandemic 16

Aligning business goals with security needs and evolving security teams need to be the focus, empowered with a wave

Business continuity
Many organisations did not envisage disruption of this
kind. Business continuity plans require changes now
more than ever, owing to continuously evolving
83%
Respondents are revisiting business
challenges and to combat such large-scale disruptions continuity and IT disaster recovery plans in
in future. case of disruption of services

Digital transformation - forcing positive

changes
Digital trust and consumer authentication are required
76%
considered the potential of digital
by organisations to become resilient. The organisations transformation as part of a response to
need to accelerate digital investments to serve COVID-19.
customers and employees, leveraging models such as The priority areas of focus for digital
machine learning and optimum utilisation of human transformation are cost reduction, efficiency
resources and thus help in long-term value and cyber security
preservation.
Also, there is new era of cyber security and security
leaders are forced to transform accelerate initiatives
around that.
Source: KPMG in India’s COVID-19 risk assessment survey

It is extremely important to develop long term technology strategies and better prepare for future disruptions

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 17 COVID-19: Surviving and thriving through a pandemic

overnance, risk and compliance

ww
by uncertainty. Organisations feel the need to frequently monitor emerging risks and strategise to minimise adv

Businesses need to reimagine Key priorities in the wake of COVID-19

the dynamics of risk monitoring
and governance. The survey highlighted following four key
priorities for organisations within the governance
Thresholds that were previously framework. Respondents placed high emphasis
configured in the ‘business as on re- assessment of evolving risks
usual’ environment hold limited Organisations have also begun to adopt
relevance today. digitalisation as an effective measure
As businesses increasingly adopt towards developing a robust risk-assessment
‘work- from-home’, data leakage approach.
incidents are more likely than ever. 21% 25% 43% 26%
Businesses need to reassess the
reputation risks that they face and work
on managing them as part of their risk 79% 75% 74%
management framework 57%
and remain resilient. Sustainable profits
arise from high standards of Re-assess Adoption Role of Segregated
corporate behaviour. evolving of digital internal audit 3 lines of
risk tools revisited defense
Yes No
Source: KPMG in India’s COVID-19 risk assessment survey

Changing regulatory norms and measures

71%
he key regulatory and legal compliances that need to be addressed during the immediate post pandemic scenario Interestingly, many organisations i
ng released are also acting as a barrier to the flow of

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 COVID-19: Surviving and thriving through a pandemic 18

Leaders are working on reinventing risk and governance frameworks

79%
Need to reassess emerging risks
respondents have opined that The emerging risk during a pandemic may change the
they have re-assessed the entire dynamics of risk monitoring and governance as
key enterprise risks that business risks may not be properly visualised
impact organisation’s strategy In an attempt to stay resilient, respondents are
and business continuity prioritising key risks’ assessment and coming up with
mitigation measures.

75%
Evaluate use of technology
respondents feel the need for
adoption of digital tools/initiatives Organisations today feel the need to follow holistic and
(e.g. Analytics, Workflow based novel approaches in dealing with the emerging risk
applications) to monitor key risks landscape. However, they are not yet completely aligned
and their mitigation to adopting technology-based solutions for business
monitoring and risk mitigation.

57%
Revisit internal audit plans
respondents have opined that
they have revisited role of internal Organisations have gone beyond the scope of
audit to include new risks that traditional internal audit plans during the pandemic
matter (e.g. workforce, remote onslaught. They have assessed and are coming to
working, liquidity, operations etc.) terms with new areas to be reviewed using COVID-19
organisations lens.

Strengthen the three lines of defense

74%
respondents
Despite the emphasis beinghave opined operations and continuance, organisations have expressed the need for stringent lines of defe
on business
that they have clearly defined and segregated their ‘lines of defense’

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 19 COVID-19: Surviving and thriving through a pandemic

apting to a new world order

Recover Revive Thrive
We are entering a new phase of COVID-19 It is now crucial for business leaders to come up
pandemic where organisations are resuming their with specific and detailed launch map in order
operations and are gearing up for this new phase. to address key challenges across the value
This transitional period will call for organisations chain.
to remain agile and act fast in re-inventing and We have enumerated some key takeaways for
implementing strategies and operational models. organisations to consider while formulating their
relaunch plans.

Strategy and growth

• Revisit the strategies for both short and long-term
starting with focus on sustenance and shifting
Never let a good crisis go to was
Source: best quotations.com-Winston Churchill
gradually towards growth
• Undertake careful market assessment to
identify new market entrants, competition
strategies etc.
• Prepare to tackle a price war by diversifying portfolio/
pricing. Strategise: Think on your feet
Customers Vocal for local
Look for new customers, vendors and alliances with shifting focus on ‘self – reliance’
• Build customer trust on safety measures
• Differentiate demands based on micro markets
• Maintain pricing discipline to prevent downward
trend of prices and assessEmerging
pricing strategies
tech waveand
delivery models. Innovate Digitalisation
ways of working andinto almost every critical business aspect provides a huge impetus to tech and allied
seeping
establishing new partnerships/alliances
• Explore and leverage digital offerings and marketing
with contactless processes, virtual
Think tours,
beyond etc. Human
obvious: Food for thought
angle to digitalisation is thePersonal
key mobility v/s public transport
Expected increase in demand for personal vehicles owing to safety perception, making it critical for auto p
• Identify and stay close to the best customers and
enhance customer base by building strategy across
sectors and geographies.
Production and operations
• Secure supply chain resilience by ensuring
availability of material. Find alternative sources and
establish continuous communication with vendors
• Focus on ramping up production with available
labour and planning shifts appropriately
• Strengthen ability to anticipate and cater to
demands by end-to-end visibility on the supply chain
ecosystem
• Digitalise supply network using technologies such as
IoT, AI, robotics etc. to be an integral part of strategy
and business continuity.

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 COVID-19: Surviving and thriving through a pandemic 20

People and society Governance, risk and compliance

• Control workplace access and conditions to ensure • Revisit ERM framework - explore advanced risk-
adequate employee safety management tools like dynamic risk assessment
• Revaluate strategic workforce planning, • Adopt technology-enabled risk monitoring solutions
including remote workforce planning such as continuous control monitoring through
• Ensure agile leadership with transparent digitalisation
communication • Identify new areas for audit based on emerging
• Develop communication strategy across mediums risks
including social media
• Revisit corporate social responsibility (CSR)
initiatives to be taken up in the pandemic scenario.
Liquidity and profitability
• Evaluate cash position (current/near future)
and determine beneficial modes of funding
• Ensure continuous focus on spend to maintain
balance between financial standing and criticality.
Organisations need to look for avenues of
sustainable cost reduction and a fundamental cost
reset
• Assess if it is possible to take advantage of
additional liquidity being pumped into the system
by the RBI and the GOI in the form of economic
stimulus packages
• Conduct scenario analysis of liquidity
and profitability for better preparedness.
Technology
• Revisit digital strategy. Visualise existing
operations in digital format, re-prioritise and
expedite digital transformation initiatives to enable
resilience and establish digital channels for
users/consumers
• Enhance cyber-security measures with significant
focus on awareness in order to avoid breach/fraud
• Work on rapid adoption of cloud-based
technologies, automation/collaboration platforms
and data analytics
• Focus on crisis response and business
continuity planning.

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 s
under the recent stimulus packages announced to infuse liquidity into the economy. Organisations will have to make the most of moratorium extens

g limit under Marginal Standing Facility (MSF) scheme allowing additional infusion of INR1,37,000 crore at reduced rates
ress Release by Reserve Bank of India on March 27, 2020/ accessed on May 25, 2020

Integrate governance with business

Map governance with growing business challenges. Organisation level controls to critically assess threats and risks and mandatory

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 21 COVID-19: Surviving and thriving through a pandemic

Methodology
This report has been put together These participants were key The survey questions were
basis the results of COVID-19 managerial personnel (KMPs) designed to assess the
risk assessment survey from eight industries namely, preparedness of the participants
conducted consumer markets, industrial across seven themes namely,
by KPMG in India wherein 240 manufacturing, financial services, liquidity and profitability, people
organisations across industries energy and natural resources, life and society, governance and
have participated. The survey was sciences, infrastructure, media and compliance, strategy and growth,
conducted between 5 May and 22 entertainment; and technology. customers, technology and
May 2020. production and operations

Participants’ profile — COVID-19 Risk assessment survey

Participants’
profile

Industrial Consumer Infrastructure Life Sciences

Manufacturing Markets

22% 21% 16% 7%

Financial Technology Energy and Natural Media and

Services Resources Entertainment

13% 10% 8% 3%

Up to INR500 - 1,000 INR1,000 - 5,000 INR5,000- More than

INR500 crore crore crore 10,000 INR10,000 crore
26% 12% 39% crore
11%
12%

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 COVID-19: Surviving and thriving through a pandemic 22

Acknowledgement
Report authors

Ashish Aul
Partner and Co-Head
Governance, Risk and Compliance Services
[email protected]

Vijay Chawla
Partner and Co-Head
Governance, Risk and Compliance Services
[email protected]

Harkishan Bhatia
Partner
Governance, Risk and Compliance Services
[email protected]

Saurabh Tripathi
Director
Governance, Risk and Compliance Services
[email protected]

Deepika Lubdhani
Associate Director
Governance, Risk and Compliance Services
[email protected]

Chandrachud Raval
Associate Director
Governance, Risk and Compliance Services
[email protected]

Avneesh Hegde
Manager
Governance, Risk and Compliance Services
[email protected]

Contributors Brand and compliance

Sanchit Dave Nisha Fernandes

Abhi Vyas Rahil Uppal

Rajan Jain Shilpa Bhoir

Isham Mahajan Satyam Nagwekar

Manish
Bhavya Nagpal

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Notes
 IN OUR ABILITY TO TRIUMPH
OVER ANYTHING IN OUR SPIRIT
OF UNDYING ENTHUSIASM OUR
DRIVE TO ACHIEVE THE
EXTRAORDINARY UNMOVED BY
FEAR OR CONSTRAINT
WE’RE DRIVEN BY JOSH AND IT SHOWS

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. THIS ADVERTISEMENT FEATURES KPMG INDIA EMPLOYEES

© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG in India contacts
Akhilesh Tuteja
Partner and Head
Risk Consulting
KPMG in India
E: [email protected]

Ashish Aul
Partner and Co-Head
Governance, Risk and Compliance Services
KPMG in India
E: [email protected]

Vijay Chawla
Partner and Co-
Head
Governance, Risk and Compliance Services
KPMG in India
E: [email protected]

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