Organizational Resilience

What is Organizational Resilience?

According to ISO 22 316: 2017, Organizational Resilience is the ability of an organization to absorb and adapt in a changing environment to enable it to deliver its objectives and to survive and prosper. 

Resilience can be a strategic organizational goal, and the outcome of not only sustainable and responsible practices, but also of effectively managing risk, knowledge, and innovation in value / supply chains, networks, and ecosystems. Resilience is the key to successfully leading lasting change & transformation. It generally embodies the entire organization, including people, process, technology, assets, and everything needed to operate in a sustainable and responsible manner.

Characteristics of a Resilient Organization

Based on the definition of Resilience by the International Organization for Standardization (ISO 22301, 2012), an organization could be considered resilient if it is able to continue its critical functions at least in the Minimum Business Continuity Objective (MBCO) level within the Maximum Tolerable Period of Disruption (MTPD) after any disruption. In this context, the strategic alignment of a supply chain to strategic objectives and operational results, is key. A resilient organization has:

• A greater awareness of itself, its key stakeholders, and the environment within which it operates, both on a day-to-day basis and in emergency situations. 
• An increased ability to identify and manage its keystone vulnerabilities including the positive and negative impacts that these could have for the organization in a crisis. 
• The ability to adapt to changed situations with new and innovative solutions and/or the ability to adapt the tools that it already must cope with new and unforeseen situations.

Risk Management, the Foundation of Organization Resilience

We advocate that building Resilience requires the sound assessment, planning, monitoring, and communication about risk. Risk management provides the foundation that links different organisational capabilities such as emergency, business continuity, security, and crisis management. Risk management provides a common understanding of how uncertainty arising from highly volatile environments can affect the organisation’s objectives.

Resilience Principles

The following principles and advice on putting the principles to work should help organizations take tangible steps toward becoming more resilient.

Operational Resilience

What is Operational Resilience?

CERT – RMM defines Operational Resilience as the organization’s ability to adapt to risk that affects its core operational capacities.  According to CERT – RMM Resilience objectives for products, services and assets can be achieved through an Operational Resilience management (ORM) system. Such system includes all the value chain processes along with their associated and supporting programmes, policies, plans, and digital tools.

Risk, Problem Solving, Knowledge, and Innovation Management are considered to provide the foundations that link different operational resilience capabilities such as emergency, business continuity, and crisis management.

An Operational Approach to Resilience:
From Vulnerability to Resilience

In the context of a continuum, Resilience becomes a system’s desirable property towards which management should lean (Veludo, 2022). No organization, person, network, or system can be totally resilient. Resilience can never be static as it is constantly changing. Organization Resilience requires seeing crisis, disasters, disruptions, and incidents as opportunities for improvement, change and transformation. 

Why building Organizational and Operational Resilience matters?

To achieve its purpose, mission, and objectives in a fast-changing world and in VUCA (vulnerable, uncertain, complex, and ambiguous) times, an organization needs to put the Resilience as a goal, at its centre, to survive and thrive in the face of threats, to comply with increasing regulatory schemes, and to prepare for the challenges yet to come.

More resilient organizations can anticipate, prepare for, respond to threats, and create breakthrough opportunities, arising from sudden or gradual changes in their internal and external context. 

What are key Challenges, Obstacles and Success Factors for Building Resilience in Organizations?

Bibliography

Small Business Resiliency Guide

https://wsbdc.org/wp-content/uploads/2020/03/Business-Resiliency-Guide-Final.pdf

Key success factors for Operational Resilience

https://www.pwc.com.au/assurance/digital-trust/July-COVID19-Operational-resilience.pdf

Putting Organizational Resilience to Work

https://www.researchgate.net/profile/Larry-Mallak/publication/291863333_Putting_Organizational_Resilience_to_Work/links/5831eed408aef19cb819ad93/Putting-Organizational-Resilience-to-Work.pdf

By Maria VELUDO, PhD

By Maria VELUDO, PhD

[…]

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ESG stands for Environmental, Social, and Governance criteria. ESG refers to the three key factors when measuring the impacts of an investment in a company or an organization. These factors include issues like diverse and inclusive workplaces, following high ethical standards, the efficient use of energy, and recycling. 

ESG, at its core, is a corporate governance and investment framework. ESG Investing is the consideration of environmental, social, and governance factors alongside financial factors in the investment decision-making process. ESG factors and data help to identify risk-adjusted returns and highlight relevance to capital opportunities. What this means in practice is companies that adopt ESG principles consider, measure, report (and, hopefully, work to improve) the environmental, social, and governance aspects of their business alongside its financial considerations (profit, expenses, growth, accounting). 

Sustainability & CSR address the environmental, social, and economic goals of a system aiming at a development that is ecologically sustainable, socially equitable, and economically efficient.

By Maria VELUDO, PhD

[…]

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