It turns out this month's US election will bring an era of significant changes to address the pandemic, expand domestic health care, modernise infrastructure and adopt expansionary fiscal policy—all of which will define the economic policy landscape over the next two years. And it seems the ASX agrees with those sentiments, with renewed confidence only seen prior to the pandemic. It is now likely we have a vaccine that could plausibly be produced and distributed over the next 6 months with the Australian government sealing a deal, for a CSL subsidiary to spend $800 million to build a new facility in Melbourne and the government will buy the vaccines it will produce.
With this backdrop, it is important for businesses to engage in discussions about the implications of recent events on their risk management strategies. Due to COVID-19, the role of the Board of Directors with enterprise wide risk oversight has become increasingly challenging as expectations for Board engagement are at all-time highs. While the pandemic may increase the risk committees’ significance, potentially putting it on par with the audit committee, it may also prompt the Board to contemplate how much oversight it expects from that committee.