What is operational resilience?

Operational procedures tend to be designed for efficiency rather than risk and compliance—they also tend to rely on corrective tools rather than more automated preventative measures. Unfortunately, this can leave gaps in a business’ defenses and make response much more difficult. Instead, incorporating risk and compliance activities into everyday processes, automating where possible, using a common data source across your organization, and continuously monitoring for incidents, you can optimize incident response to the point where many emergent events can be countered before they make any negative impact.

Perhaps the worst approach to operational continuity is waiting for disaster to strike before deciding how to respond. Poor communication between vendors or suppliers, inaccurate or incomplete information, and insufficiently trained personnel may lead to businesses making uninformed, split-second decisions that may actually cause more harm than good. By creating a detailed continuity plan, you provide your organization with a blueprint for remaining calm, reducing risks, and recovering quickly. Make sure that your plan is reviewed and approved by key decision makers, and test it for effectiveness before implementation.

Effective operational resilience allows an organization to bounce back from disasters. But with so much focus on survival, organizations can lose sight of the unique learning experiences disruptions provide. The ability to adapt and take away key insights means that you have the opportunity to improve your organization and response plan to better counter disruptions in the future. In the event of an emergency, have programs in place to collect relevant data, review and analyze results, and communicate vital conclusions to your teams.

It’s important to account for internal and external factors that will influence your organization, such as systems, processes, business lines, assets, people, and third parties. A resilient operation sees the interconnection and interdependence of risk and how it impacts an organization. An effectively managed risk management portfolio looks across divisions and operations to assess, in a holistic manner, all potential threats.

Translate risk into terms that everyone can comprehend. Common language provides the opportunity for a more comprehensive analysis and documentation of potential risks within the organization; it also provides a more robust series of discussions around risk and returns on risk as your organization takes the time to consider adapting to risk and changing conditions.

There are no two events that are the same, but there is plenty to be learned from each event. Assess where your key risks are across your organization and implement potential workarounds to assist your organization with its adaptation of changing conditions. Robust systems, flexible processes, resilient culture, and a collaborative environment are all key.

Your employees well being should be your primary concern in the event of a disaster or other emergency. Ensure their safety and help maintain their productivity by focusing on proactive collaboration, communication, and leadership. Verify compliance with established controls by leveraging HR-system and app data, and provide alerts, training, and policies to better prepare your workforce for potentially dangerous or disruptive situations.

Facility disruption, in the form of power outages, flooding, fires, etc., can grind your business to a halt. Operational resilience helps preserve safety and compliance within your facilities, and ensure reliable access to status information and essential controls.

Even if your organization is well prepared and extremely resilient, the third parties you do business with can introduce potential issues. Risk and compliance assessments help evaluate business continuity and risk management programs from you suppliers, consultants, and vendors. When necessary, include policy compliance in contracts, and improve diversification through second sourcing.