On 20 January, eight hours after taking the oath of office, US President Donald Trump announced that the United States would withdraw from the World Health Organization (WHO). Exactly five years earlier, on 20 January 2020, the Chinese government had officially informed the world about the Covid outbreak for the first time.

The timing serves as a reminder: the lessons of the pandemic are already largely forgotten, and ignorance guides US policy. Instead of addressing such global crises in a coordinated and collaborative manner, Trump’s America focuses solely on perceived national interests in health policy. This approach is shortsighted, as the next pandemic virus will not respect national borders.

The private sector also turns a blind eye. According to the annual Risk Barometer survey conducted by Allianz Commercial, which polled over 3,700 risk managers worldwide, pandemics rank only 19th among the most significant business risks – even behind product recalls. Just before the Covid-19 crisis, pandemics were ranked 17th.

Admittedly, day-to-day business operations often present more immediate challenges than the abstract risk of a pandemic. Nevertheless, ignoring this risk is a grave oversight, as two key points illustrate:

First, while the probability of a pandemic may be low, the potential for business disruption is catastrophic. Years of operational success hold little value if they are erased, let's say, every 25 years. Relying solely on government aid programmes in the wake of the Covid-19 crisis is a risky gamble..

Second, although pandemics remain less likely than risks such as cyberattacks, climate change is significantly increasing their likelihood. Rising temperatures are driving many animal species to new habitats, where they encounter other animals – including mammals – they have never encountered before. This creates a fertile ground for pathogens. One study predicts that a 2-degree Celsius temperature increase by 2070 could lead to up to 15,000 new interspecies virus transmissions.

When such diseases spill over to humans, the feared zoonosis occurs. Many scientists believe that zoonotic transmission also marked the start of the Covid-19 pandemic. As per the WHO, zoonotic diseases in Africa increased by nearly two-thirds in the 2010s compared to the previous decade.

Good corporate governance must account for the threat of pandemics. This is easier said than done, as each pandemic virus will manifest differently. Nevertheless, one principle remains clear: companies must invest in resilience. Only those who regularly stress-test their supply chains, maintain robust remote support systems, prepare for a full shift to remote work, have ready-made internal crisis communication plans, and hold sufficient financial reserves, will be able to effectively manage the next pandemic.

Such precautions might initially unsettle employees but ultimately provide a sense of security. One of the pandemic’s greatest societal costs has been the erosion of trust in institutions and governments. While businesses cannot undo this damage, they can contribute to rebuilding trust and ensuring it is not further eroded.

Pandemic preparedness is also hindered by the absence of pandemic insurance. There is little indication that governments are interested in creating such a mechanism in collaboration with insurers. Ignoring this gap, however, is no solution either.