In times of uncertainty, organizations usually depend on their business strategies for risk management and disaster mitigation. These strategies provide the guidelines to function the day-to-day operations of the business in a timely manner. The main driving factor for these organizations to continue their business processes in the event of uncertainty is by building resilience. Achieving business resilience is no small feat, it requires efficient planning and a strong culture of resiliency built into the core of the organization.
Resiliency is an attribute that most individuals will seek to have in moments of uncertainty, an organization is no different. An organization having a strong business resilience means that they can protect themselves from the worst impact of the uncertainty and turn it around into an opportunity for growth. These uncertainties are risks that can be caused by external as well as internal factors. Organizations can become business resilient when they have successfully managed to keep the negative impact of the risk to a minimum and act on the opportunities created through the risk factors.
We can take the example of the recent global health crisis, the COVID-19 pandemic that shook the world’s economy and completely overwhelmed the world’s healthcare system. Many business organizations from large corporates to small businesses suffered due to the pandemic. Loss of lives and livelihoods brought the reality of a second economic crisis to the forefront. However, even during this uncertain period of turmoil and panic, many businesses reported increased profits and success. E-commerce websites and food delivery services witnessed a massive boom in their business processes as the whole world went into lockdown. Many on-site food and retail shop owners switched to online delivery mode to match the existing market leaders to protect their business.
Building business resilience is a gradual process that starts with the leaders and executives of the organization and concludes at the delivery level. When customers’ requirements are met successfully, business resiliency is achieved. Growth and resilience should be the prime objective of an organization’s risk management strategy. This also involves streamlining the financial, operational, and psychological elements of the business as well.
How to Build a Good Strategy for Business Resilience
Building a good business resilience strategy not only helps to achieve objectives and protect itself from the worst effects of uncertainty but also helps in building confidence in its stakeholders. Employees will feel safe in the organization they work in and trust that their risk management strategy will prevent them from getting affected to a large extent. Customer reliability and confidence will increase when they feel that their needs are being taken into consideration even during a crisis.
A good business resilience strategy is a result of these four components:
Strong Company Culture
The culture of an organization represents its beliefs and goals. It acts as a prevalent notion of the mission and vision of the organization. An organization having a strong company culture will have better resiliency. Poor company culture and politics will affect the overall culture of an organization.
Trust in Good Leadership
Leaders and owners create the culture of a company. They start the organization by creating the vision and mission, so they need to show the rest of the organization that they believe in that vision and mission by leading by example. Good leaders help create the best business resilience strategy by collaborating with business experts and advisors.
Well-defined Communication Channel
Without a proper communication channel in an organization, the vision and mission of the organization cannot get communicated effectively. Thus, to have a good company culture and create an effective business resilience strategy, organizations should have well-defined communication channels.
Ability to Adapt to Change
An organization that could adapt to change can prosper when uncertainty occurs. The ability to adapt to change depends on a combination of strong company culture, good leaders, and a well-defined communication channel in the organization. This helps the organization take swift measures to mitigate risks that threaten the business operations or take advantage of new business opportunities.
Therefore, modern organizations should strive to achieve business resiliency. Business enterprises can use our RSA Archer Consulting Services to manage business risks and operational risks using the RSA Archer GRC platform to attain business resiliency. Our expert advisors and consultants will assist organizations in managing their business operations with transparency and efficiency. We provide customized integrated risk management solutions to business organizations that will make their business processes more resilient to disruption caused by uncertain events.