Operational resilience covers what organisations must do to be resilient. A structured, four-step approach can help.
By Karen Humphris, Senior Manager: Advisory Services, ContinuitySA
As competition becomes fiercer and customer expectations rise, the ability to respond rapidly to changing realities is becoming critical. This organisational resilience is becoming a key driver of sustained success—and an organisation’s resilience is only as good as the ability of its operational capability to adapt to change.
To achieve operational resilience, organisations need a dynamic approach that covers all key dependencies, has the right governance in place and, critically, the right people. In addition, every effort needs to be made to create a culture of resilience in the organisation.
The best way of achieving operational resilience is a structured approach or framework. At ContinuitySA, we have found a four-step approach works well, and can also be tailored to every organisation’s unique circumstances. Such a framework will provide a bird’s eye view of the organisation’s vulnerabilities and points of failure, as well as outline the right decision-making capabilities to manage these vulnerabilities, and how these vulnerabilities should be integrated into the existing risk-management principles (depending on risk appetite).
The four steps are:
- Define the organisational structure.
- Analyse the functions within each structural component.
- Classify the points of failure.
- Establish how to manage these points of failure in line with the organisation’s risk appetite and particular circumstances.
Such a framework will ensure the organisation becomes more resilient overall, and is better able to allocate its capital and resources more effectively. It is a proactive approach that will also provide stakeholders, including regulators and business partners, with some level of assurance that the organisation has a methodology for identifying challenges to its sustainability, minimising the impact on them