Written By: Olivia Vanleeuwen
The morning the COVID-19 pandemic was announced, the S&P 500 fell 7% in 4 minutes after the markets opened, triggering a trading curb that halted trading for 15 minutes for the first time since the 2008 financial crisis (1). The markets continued to drop and become unstable, with implications still at play today post-pandemic. It is evident that the pandemic has vastly impacted the financial industry and in hand their risk management strategies. Risk management can be defined as the process of identifying, quantifying, and managing potential risks faced. In the finance industry risk management tends to centralize on the possibility of losses on an investment (2). The pandemic impacted the financial industry by creating a shift to remote work, creating changes in consumers’ behaviours, and putting the industry on the road to recovery. These implications have shifted the risk management strategies of the financial sector.
