Even though the coronavirus continues to pose a serious public health threat, governments around the world are trying to protect their economies by easing restrictions. As the crisis enters a new phase, companies are focused on restarting their businesses. Leaders are working hard on issues such as workforce deployment, company operations, and long-term strategy, and they are considering how to account for and report on the consequences of the pandemic.
From June 11 to June 26, 2020, Tapestry Networks convened a series of virtual meetings with the audit committee chairs of more than 100 large US public companies to discuss how boards and audit committees are responding to the COVID-19 crisis. EY experts and senior leaders joined the audit chairs in these meetings.
This ViewPoints synthesizes discussions about three themes that emerged in the meetings:
• Workforce well-being remains a top priority for boards
• Operational and strategic initiatives are under review
• Financial reporting challenges are likely to persist through year end
Read the full ViewPoints here.
To read all of Tapestry's recent ViewPoints regarding board response to COVID-19:
COVID-19 prompted oncologists across the United States to rapidly deliver new interventions and policies to protect their patients and workforce. As the acute crisis abates in some states, stakeholders are contemplating the longer-term implications of COVID-19 on oncology. Such implications include the crisis’s impact on the ongoing shift to a value-based care paradigm and alternative payment models (APMs).
COVID-19 arrived when value-based oncology was already at an inflection point: the advent of a successor model to the country’s largest oncology payment reform experiment, the Oncology Care Model (OCM). This past fall, the Center for Medicare and Medicaid Innovation (CMMI) released a request for information describing the potential successor, the Oncology Care First (OCF) model, and CMMI’s vision to base aspects of the OCF model’s payment methodology on cancer type, a more granular approach than is used in OCM. Although the fate of the new model is uncertain following CMMI’s extension of OCM in response to COVID-19, the evolution of more granular payment models remains top of mind for participants in the oncology APMs advisory council, as do the underlying data foundations needed to achieve more granularity and accuracy.
Council participants met virtually in June 2020 to address the above issues. Read more about their work here.
On June 2 and 8, Bank Governance Leadership Network (BGLN) participants joined two virtual meetings to continue discussions around the COVID-19 pandemic and implications for large bank operations, technology, and credit, conduct, and reputational risks. The key themes that emerged include:
· As digital transformation has accelerated, new risks have emerged
The COVID-19 crisis has forced banks and their customers to use digital tools and processes to compensate for branch, office, and call center closures. Participants discussed moving more quickly to the cloud and expanding the use of AI, the acceleration of internal processes, and the related cyber and operational risks they have accepted in the short term, and what may persist over the longer term.
· Persistent uncertainty continues to challenge forecasting
The unprecedented steps taken to control the pandemic, the delayed effects on some sectors, and the continuing uncertainty about global economic recovery forecasts compound the challenge for banks trying to model the impact on their customers and portfolios.
· Banking models and reputations will be tested
Participants discussed the risks for banks as government programs to support individuals and companies through the COVID-19 pandemic expire and the financial impact of the pandemic and economic shutdowns catch up with more customers.
Read the full ViewPoints here.
Private sector wants more — and better — cybersecurity cooperation with government
Morning Consult is a global technology company revolutionizing ways to collect, organize, and share survey research data to transform how decisions are made.
On March 9, 2020, Morning Consult published an Op-Ed written by Jonathan Day and Michael Mahoney of Tapestry Networks. The piece highlights the need for better coordination between the government and corporations on dealing with emerging and evolving cybersecurity threats.