Operational Resilience

What is Operational Resilience?

Operational resilience refers to a company’s ability to respond, adapt, withstand, and recover from potential disruptions, including natural disasters, cyberattacks, technical malfunctions, and power outages. Strengthening your organization’s resilience is not just about protecting against disruptions; it’s also about creating a robust, adaptable, and forward-thinking organization.

Notable Benefits

Here are the notable benefits of operational resilience:

• Improved risk management – Implementing resilience strategies allows companies to anticipate potential issues and mitigate their impact.

• Improved business continuity – Operational resilience strengthens business continuity by reducing disruptions and keeping critical functions running smoothly.

• Compliance with existing regulations – Depending on the industry, businesses are required to have operational resilience plans in place. Having operational resilience ensures that businesses are compliant with applicable regulations and helps them avoid fines and other legal liabilities.

• Competitive advantage – Companies that are operationally resilient often tend to outperform competitors, especially during large-scale natural disasters. Gaining this upper hand is essential in maintaining market share and driving business growth.

• Agility and adaptability – A resilient organization continuously prepares for future uncertainties and enhances its business agility, allowing it to adapt to every challenge and constantly evolve with the changing business landscape.

Pillars of Operational Resilience

Operational resilience is a critical concept for organizations aiming to withstand disruptions and maintain essential functions. To do so, businesses should focus on the following operational resilience pillars:

The Essential Pillars of Operational Resilience | SafetyCulture

• Employee Resilience – involves equipping staff with skills through operational resilience training and support to adapt to and recover from disruptions.

• Technology Resilience – is the implementation of robust IT infrastructure and security measures to safeguard against cyber threats and system failures.

• Facilities Resilience – focuses on maintaining and securing physical infrastructure to withstand and recover from natural disasters, accidents, or other disruptions.

• Financial Resilience – involves having the financial strategies and reserves in place to absorb shocks and sustain operations during economic disruptions.

• Governance Resilience – ensures that robust policies, procedures, and oversight are in place to guide the organization through crises and maintain regulatory compliance.

• Culture Resilience – fosters an organizational mindset that values adaptability, continuous learning, and proactive risk management, enabling the company to thrive amid challenges.

Best Practices

Operational resilience has become a critical focus for businesses aiming to survive and thrive amid uncertainties. Whether facing cyber threats, natural disasters, or economic downturns, resilient operations ensure that companies can continue to deliver essential services.

1. Conduct a comprehensive risk assessment.

Systematically identifying potential threats is the first step towards resilience. Assess all risks across your business areas, including IT systems, machinery, and human resources. Then, identify vulnerabilities and prioritize them based on their severity.

2. Establish clear KPIs.

Key performance indicators (KPIs) are a staple in any business strategy, including operational resilience. These metrics enable the organization to gauge its performance against industry standards or historical data by highlighting which areas need to be improved. They help operations managers make informed decisions and enhance the company’s overall resilience.

3. Develop a robust business contingency plan.

A contingency plan outlines the procedures and instructions a business should follow in case of emergency. Depending on the identified possible risks, this documented set of processes can inform employees on what to do in matters such as safety protocols and business continuity.

4. Engage employees.

Involve employees in the discussion as you craft your operational resilience framework. Encourage your employees to ask questions and give suggestions as this opens up communication about potential risks and solutions. This openness also fosters a culture of resilience that helps employees understand their role during times of crisis.

5. Leverage technology and automation.

Enhance operational resilience by automating routine tasks, leveraging machine learning and artificial intelligence, and using Internet of Things (IoT) devices for real-time monitoring. These technologies boost productivity, improve customer experience, and ensure smooth operations even on normal business days.

6. Train and develop employees.

Training and development are vital for building a resilient workforce capable of achieving operational resilience in the face of challenges. By investing in your employees’ skills and preparedness, organizations can create a robust foundation for enduring and thriving through disruptions.

7. Regularly review and improve your strategies.

Operational resilience is an ongoing process, so it’s best to stay updated on the latest resiliency trends. Regularly review your strategies and make improvements based on new insights and technologies and feedback from employees and stakeholders.

Operational Resilience Regulations and Standards

Various regulations and standards globally address operational resilience, focusing on different industries and concerns. Here’s a list of some operational resilience requirements: