Operational resilience makes your company a more attractive investment
Technology advances, together with growing customer demands, are creating an increasingly challenging environment in which to deliver products and services. At the same time, the instantaneous and high-profile nature of feedback from social media feeds means that your organisation needs to be operationally resilient.
If you are an owner or investor considering a sale and trying to increase the multiple your investment can achieve, business resilience is vital, not only to you but to future investors.
Demonstrating to potential investors or buyers that you have considered business risks, and have contingencies ready to roll out if needed, means your company is a more secure investment than others in the sector. This will increase the multiple you can secure. Simply hoping a disaster will conveniently avoid your business is not a realistic option.
Be ready to adapt to inevitable changes in the business environment
In a recent speech, Charlotte Gerken, a director at the Bank of England, described operational resilience as “the ability to adapt operations to continue functioning, when – not if – circumstances change”.
But what is operational resilience? Certainly, it is more than the traditional disciplines of Business Continuity Management (BCM), IT Disaster Recovery (ITDR), and Incident Management (IM). In essence, operational resilience is the outcome of a company truly understanding its strengths and weaknesses, together with strong operational risk management.
Operational resilience produces multiple benefits
There are compelling benefits to achieving effective operational resilience. Firstly, by accepting that risk management techniques cannot eliminate risk completely, the response to an incident is likely to be managed more effectively, and in a more measured fashion.
Secondly, by adopting techniques to understand operational resilience, it is likely to drive better decision making at a senior level, as there is greater understanding of how the organisation operates and its strengths and weaknesses.
So how do you implement operational resilience? Here are the four steps you need to take.
1. Define the standard by which your company will operate.
2. Compare your company’s current performance to the new standard to find where it falls short.
3. Evaluate key processes from your customers’ perspective. Doing this is more likely to minimise reputational risk into the future.
4. Map each key process against the four enablers – technology, people, premises and suppliers – to pinpoint where you must improve your company’s resilience.
If you would like to find out more about operational resilience, please contact Tom Willcock on firstname.lastname@example.org