Anticipatory Governance

Context: Covid experiences should help the world prepare better for the next disruption.

Two major observations on the pandemic: Which could help in anticipatory governance

• Importance of collaboration:
  • The vaccines could not have been developed in record time without the collaborative effort of governments, industry, scientists and academics.
  • The vaccination programme in India has moved faster in those states where governments have brought in the private sector and solicited expert advice than those where decisions have been made inside the siloed chambers of bureaucracy and politics.
• Severity of the pandemic on the cadre of corporates: Data by SEBI revealed that 24 companies lost one or more of their Board Directors or KMPs to Covid in March and April.
  • Corporates lack sufficiently robust risk management systems in place to identify, prepare and manage the emergent risks of a fast-changing, dynamic, networked and hyper-connected world.
  • While most companies have well-established risk management systems and processes, they are less effective in conditions of flux and unpredictability and thus remain tunnel-visioned.

Way Forward:

• Redesigning risk management systems:
  • Loosen the straitjacket and create processes that encourage the asking of counterfactual “what if” questions.
  • Should also share information with corporate peers about emergent systemic risks — for example, cybersecurity; global warming — and institutionalise a mechanism for inter-sector collaboration on risk management.
• Set up a National Risk Management Committee: Comprising members from industry, government, and civil society, chaired by a non-government person recognised for their intellect, leadership and public service.
  • The committee should be non-partisan and protected by an Act of Parliament.
  • It should be financially autonomous.
  • Its purpose should be to identify the unexpected, develop scenarios of alternative futures, coordinate responses and influence political and bureaucratic mindsets.