DEFINING THE FUTURE OF OPERATIONAL RESILIENCE
Traditionally, business continuity and operational risk have operated as two separate silos within organisations. Is this the best method for mitigating risk in a world where business is changing by the second? Industry expert Michael Rasmussen says the answer to that question was made abundantly clear in 2020 – embedding business continuity more deeply in risk management is the best strategy to achieve operational resilience.
However, few companies are prepared to handle the risks that emerged in 2020 unless they were practicing the integrated, holistic strategies inherent in an operationally resilient approach.
Business vs. operational resilience
There is a common misconception that operational resilience is the same as business resilience, according to Mr Rasmussen. Business resilience is more of an umbrella term that considers an organisation’s overall strategy, liquidity and the ability of operations to continue amid changing risks. It asks whether the strategy is diversified, agile and resilient enough for the business to achieve its goals.
Operational resilience is a key component of business resilience that focuses on internal processes, services, people, systems and relationships — and the events that impact these factors.
2020 showed companies the dangers inherent in keeping continuity, risk management and other critical functions separately siloed in a business.
Apr-Jun 2021 Issue
SAI Global