Towards social security resilience, business continuity
The COVID-19 pandemic exposed the business continuity preparedness of many institutions. It turned business disaster management planning on its head, as it forced companies around the world to rethink their operations and, in many cases, embrace totally new models for work.
According to Tim Minahan, executive vice-president of business strategy at Citrix, “While many had begun moving toward remote work as part of their business continuity plans, few were prepared to do so at the speed and scale the pandemic required.”
The era of COVID-19 in Ghana was also the most vital for social security institutions as they were the only institutions to keep body and soul together at a time when productivity was at its lowest worldwide.
The post-covid era has taught us to prepare for a new normal business continuity and resilience in Ghana, which involves ensuring that social security systems remain operational and effective, even in the face of disruptions such as economic crises, natural disasters or pandemics.
This is crucial for safeguarding the welfare of citizens, particularly the vulnerable populations who rely on social security benefits for their livelihoods.
Five years down the line, there are still some weaknesses in business plans which will make social security institutions vulnerable to another disaster.
There are still some key strategies that need to be put in place to enhance social security business continuity and resilience in Ghana.
First of all, there is the need for the creation of Business Continuity Plans (BCP) for every social security institution that will help in strengthening the institution’s disaster management frameworks.
This must begin with a robust governance structure that establishes clear policies and governance structures to ensure accountability and transparency in social security administration, and assign duties and responsibilities to departments and individuals in the event of crises.
There must also be proper legal and regulatory reforms that help to update and enforce laws and regulations that support the sustainability and adaptability of social security systems.
These reforms must hinge on transformations that encourage institutions to invest in digital technology to modernise social security administration, including digital payment systems and data management platforms.
Social security institutions must also exhibit evidence of financial sustainability.
This means that they should be able to show diversified funding sources.
There should be a reduction of reliance on a single funding source by exploring options such as public-private partnerships, donor funding, and innovative financing mechanisms.
This means, therefore, the minimum capital requirement for embarking on social security administration.
Institutions must build and maintain a buffer of reservation or contingency funds to cushion against economic shocks or unexpected demands on the system.
Institutions should also regularly conduct actuarial valuations to assess the long-term financial health of social security schemes that use both defined contributions or defined benefit mechanisms and adjust contributions or benefits as needed.
These studies will help them to employ data-driven approaches to identify trends, predict risks, and optimise resource allocation.
Programmes
Social security institutions should also develop tailored programmes to extend coverage to informal sector workers, who make up a significant portion of Ghana’s workforce and also ensure that social security programmes address the specific needs of women, who are often disproportionately affected by economic and social vulnerabilities.
They should also explore social insurance schemes that can provide additional protection for informal sector workers and other vulnerable groups.
These measures could ensure inclusivity and coverage expansion.
The Business Continuity Plan of social security institutions should provide for training programmes that aim to equip administrators with the skills needed to manage complex systems and respond to emergencies.
They must also launch public education and awareness campaigns to educate citizens about their rights and entitlements under social security schemes.
They should also provide for collaboration with civil society organisations, trade unions, and community leaders to build trust and ensure inclusiveness.
The use of mobile technology and online platforms to streamline registration, contribution collection, and benefit distribution can also help in sustaining business continuity and financial resilience in times of crisis.
Institutions
Ghanaian social security institutions must share knowledge and learn from best practices in other countries, particularly those with successful social security systems in Africa and beyond.
These include collaboration with international organisations such as the International Labour Organisation (ILO), the World Bank, the International Social Security Association (ISSA) and International Organization of Pension Supervisors (IOPS) to access technical and financial support.
They should also align social security policies with cross-border and regional frameworks, such as those of the Economic Community of West African States (ECOWAS).
To achieve social security business continuity and resilience in Ghana, a multi-faceted approach is required.
This includes strengthening institutional frameworks, ensuring financial sustainability, leveraging technology and fostering inclusivity.
By addressing these areas, Ghana can build a social security system that is not only resilient to shocks but also equitable and sustainable in the long term.
Collaboration between government, private sector, and international partners will be key to achieving these goals.
The writer is the Managing Director, Independent Pensions Advisory
Service Ltd
(IPAS) Ghana
