Operational Resilience is the ability of an organisation to anticipate, prepare for, respond to, and recover from disruptions, ensuring continued service delivery. It extends beyond traditional risk management by focusing on maintaining essential functions during crises, rather than just preventing disruptions.
In this blog, RiskSmart takes you through how our platform can help you strengthen your resilience and future-proof your business.
In McKinsey’s report on “The six habits of highly successful chief risk officers”, Richard Treagus, CRO of Old Mutual, calls for risk leaders to increase the priority of operational resilience.
“We [as CROs] really need to demonstrate that organisational resilience is respected, healthy, and a high priority,” he says.
A key aspect of operational resilience is understanding the dependencies within an organisation and its external environment. This includes technology, supply chains, and third-party vendors. A well-rounded resilience strategy ensures that all these elements work together seamlessly to minimise downtime and protect stakeholders.
Organisations today face an increasing number of risks, from cyber threats and supply chain disruptions to natural disasters and regulatory changes. Operational resilience ensures that businesses can withstand shocks, maintain customer trust, and comply with evolving legal requirements.
In EY’s article “What good risk management means for operational resilience” their Managing Director, stresses that operational resilience spans much wider than the continuation of services:
“Operational resilience doesn’t only relate to value creation and the services banks provide to customers – it also comprises the work banks do internally.”
– Bill Hobbs, Managing Director, Financial Services Consulting and Center for Board Matters, Ernst & Young LLP
Beyond financial and reputational risks, a lack of operational resilience can also lead to legal repercussions. Regulators across industries are mandating that companies take a proactive approach to risk management. A robust resilience program ensures compliance and fosters a culture of preparedness and responsiveness.
So, what does a robust operational resilience program include?
In McKinsey’s report quoted above, it’s illustrated how developing a strong risk culture across organisations is the key to building a strong operational resilience program and setting your company up for success.
“One of my primary focuses is to preserve the risk culture of the bank, which has served us quite well so far.”
– Frank Roncey, Chief Risk Officer, BNP Paribas.
Technology plays a crucial role in enhancing operational resilience.
By giving your GRC teams and professionals access to better tools, you help them streamline and centralise their data, leading to a more structured and robust approach.
Platforms like RiskSmart help organisations:
Across sectors
Due to stringent regulatory requirements, the financial sector has led the way in operational resilience.
Key takeaways include:
Operational resilience is no longer optional; it’s a necessity for businesses navigating today’s volatile environment. By implementing structured resilience programs, leveraging technology, and learning from best practices in financial services, organisations can protect their operations, customers, and long-term success.
“In an unpredictable world, resilience is your strongest asset. Organisations that prioritise it will not only survive but thrive.”
– Ryan Swann, CEO & Founder, RiskSmart