Crisis Sentiment Index Re-launched During Pandemic

Respondent assessments

The Directors and Chief Risk Officers group

David R. Koenig

March Index Indicates Lengthy Disruptions for Businesses

It is clear from this report that business leaders are planning for significantly longer disruptions in business activities than is commonly believed.”

— David R. Koenig

NORTHFIELD, MN, UNITED STATES, April 1, 2020 /EINPresswire.com/ — The Directors and Chief Risk Officers group has re-launched the DCRO Crisis Sentiment Index (CSI) to track the regional and global economic and financial impact of the 2020 Covid-19/SARS-CoV-2 pandemic.

During the financial crisis of 2008-09 and continuing for some years after, this global collection of board members, chief risk officers, and other c-level executives contributed their assessment of global and regional conditions to the Crisis Sentiment Index. The index proved prescient, providing a global perspective from high-level decision makers on the amplification or attenuation of the crisis. That index has been re-launched to provide forward-looking and current intelligence on the present pandemic.

While the questions and responses analyzed in the survey are primarily about the economic and financial impact of the pandemic, we must acknowledge the massive human costs of this outbreak. A focus here on business and economic impacts is in no way intended to diminish the importance of the human story with which many of us are too closely familiar.

The CSI – Pandemic index is calculated on a scale of 0 to 100 as a weighted average of responses to questions regarding:

• the length of time for which companies are planning to manage for substantial disruptions
• the present severity of the pandemic
• expectations for global or regional depression or recession
• expectations for knock-on, yet unrealized, financial market disruptions, and
• expectations for how quickly the pandemic will be under control

Based on responses, it is clear from our respective personal experiences and reported data, that this is indeed already a crisis of significant impact.

For April 2020, the CSI-Pandemic is at a reading of 68, indicating substantial stresses.

• 64% of respondents indicate at least a 50% chance of global depression, where world GDP falls by at least 15%
• 64% of organizations report planning for significant disruptions to normal activities for six months or more
• 93% of respondents indicate at least a 50% chance that a material, as yet unrealized, financial or market stress of global impact will be seen
• Just 10% believe the pandemic is more likely than not to be under control within three months

The full report can be accessed at https://www.linkedin.com/pulse/crisis-sentiment-index-re-launched-during-pandemic-march-koenig or by clicking on the link included in this release.

David R. Koenig
The Directors and Chief Risk Officers Group
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Source: EIN Presswire