Understanding Resilience
Understanding Resilience. Resilience goes beyond traditional risk management. While risk management focuses on planning and reducing vulnerabilities, resilience addresses the root causes of crises and strengthens an organization’s capacities to cope with risks, stresses, and shocks1. In a volatile world, resilience has become a critical prerequisite for corporate performance.
The Pandemic’s Impact
The COVID-19 pandemic highlighted the importance of resilience. Organizations faced unprecedented challenges, from supply chain disruptions to remote working. Key findings from a recent survey by the Federation of European Risk Management Associations (FERMA) and McKinsey revealed that:
- Almost 60% of respondents believe their organizations have excellent or very good resilience capabilities.
- The pandemic broadened leaders’ view of risk beyond specific risks, emphasizing the need for strategic resilience.
- Workplace safety and remote working were top priorities during the crisis2.
Understanding Resilience
Building Resilience
To enhance resilience, organizations can follow these steps:
- Integrate Protective Activities: Resilience management involves integrating all protective activities under a clear management structure. It encompasses readiness and response3.
- Broaden the Risk Mandate: Beyond financial risks, consider broader risks and long-term strategy development.
- Embrace Data-Driven Insights: Use data and analytics to anticipate and prepare for disruptions.
- Focus on Workplace Safety: Prioritize employee well-being and safety.
- Adapt to Dynamic Environments: Stay agile and plan for the unexpected.
Remember, resilience isn’t just about bouncing back; it’s about thriving in adversity. Organizations that prioritize resilience are better equipped to navigate today’s dynamic operating landscape. Feel free to explore these themes further or delve into specific aspects! 😊231.