Risk management during the Covid-19 crisis: business responses in the Polish water utilities

ABSTRACT

Water utilities are an essential service that helps protect public health during crises. The Covid-19 pandemic revealed that crisis preparedness is a crucial capability that water utilities must possess. The purpose of this paper is to identify managerial actions and responses that were undertaken by water utility managers in order to reduce the risk related to the first economic lockdown caused by the unexpected Covid-19 crisis. As water utilities should learn from Covid-19 so as to strengthen their future risk preparedness, the paper offers some theoretical underpinnings on risk management. As a result of literature analysis, we focus on the risk management framework that distinguishes five types of risk. The survey was carried out among 116 waterworks in Poland in April 2020. The results indicate the importance of minimising liquidity risk and supply chain risk, which is relevant to the adopted theoretical framework. The findings also highlight the importance of a category that was not originally included in the research model – that is human resource risk, an area that requires managerial attention in the water utility sector. The results could also provide useful pointers for other water utilities, especially those operating in the same or similar legislative regime.