The rapid migration to digital technologies driven by the pandemic will continue into the recovery.
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The rapid outbreak of coronavirus (Covid-19) has turned a medical emergency into a global macroeconomic crisis, causing market volatility and reshaping the world of work as millions of employees stay away from their offices to comply with social distancing rules.
Emergency contingency plans have long been a regulatory obligation for commodity and energy services firms, but the current disruption caused by coronavirus is a force majeure of unparalleled quantity.
Such recovery plans usually focus on a short-term incident such as a hack or a terrorist attack, but the unprecedented nature of the current situation has left firms in the position of having to plan for six months or more of uncertainty.
Businesses have turned to technology to solve the problem of how to continue operating, and are looking for solutions and services that can be delivered quickly, efficiently, on budget and remotely.
What is driving many commodity and energy trading companies to embrace this approach and how can Orivyn help?
Disruptions in the Supply Chain – Before COVID-19 supply chain disruptions were already a normal occurrence due ongoing trade wars and other geopolitical factor. COVID-19 has further exacerbated the challenge and has meant that some of the legacy CTRM / ETRM solutions are just not able to cope with the flexibility required to adapt to such a disruptive change. The disconnect and lack of fluid integrations between trading and risk activities and ERP has also become further exposed thus, thus creating further inefficiencies in the chain.
COVID-19 has put spot light on risk management and has increased the criticality for having a more granular and accurate view around P&L, pricing, and overall market risk. In many commodity markets it would be fair to say that some of the models and forecasts based on historical pricing, have gone out the window. Therefore, it rests on companies to adapt their business processes and implement them in a scalable and flexible CTRM/ETRM solutions.
Counterparty and credit risk have also come to the forefront. Are the processes that companies have in place able to adapt to this change and all the consequences that it may bring? And if so can these be funnelled properly in their new best practices within their current CTRM / ETRM systems?
Can the existing system support remote working? How are workflows being changed and controlled in order to adapt to this new normal? Will document management be an issue?
How are workers able to collaborate when miles apart? How is your company’s collaborative capabilities meeting the needs of your business now and in the future?
Whilst it is expected for companies to go through an initial slow down, as they adapt their activity to cope of the consequences of the pandemic, companies are now embarking on managing change and future proofing their business processes and technology.
Orivyn works with companies to understand, optimize and implement business processes and technology during and post a COVID19 world