Benchmarking Business Resilience Presentation (BRIT Part 6/22)
There has been a large amount of prior research on the ability to benchmark business resilience.
ThinkGRC has created a tool which can bring benchmarking business resilience to businesses across the globe.
The 1st phase of benchmarking business resilience begins with a given business identifying existing business problems.
This will provide the impetus behind investments in resilience and provide a basis for the benefit side of a benchmarking resilience analysis.
Ultimately a measurement and understanding of a business’s resilience strengths and weaknesses would be a great benefit and would then help evaluate the addressing of the existing business problems.
Prior research has defined the benchmarking business resilience process as consisting of 4 stages;
Plan, Measure, Analyze and Adapt
During the planning stage businesses use the business problem they have identified to define the scope of their benchmarking exercise.
This includes identifying specific questions that they would like to answer, such how many of their staff are aware of the business’s emergency plan.
The planning stage also addresses the level and scale of comparison included in the benchmarking.
For example, businesses can compare themselves against other businesses in their industry or geographic area, other businesses under their parent company, or between departments or functions within the business.
The measure stage involves the use of ThinkGRC’s Business Resiliency Index Tool© to collect data about the business’s resilience which answers the questions identified and addresses the business problem.
During this stage staff are asked to answer questions about the business’s resilience.
This provides data on each of the indicators of business resilience which is then analyzed by ThinkGRC Analysts.
The analyze stage involves the calculation of business resilience scores, strengths and weaknesses and the calculation of the comparative resilience score.
This is a percentage which tells a business which percentile their resilience score falls within.
A business with a resilience benchmark of 70% will be in the 70th percentile which means that 69% of businesses achieved a lower resilience score and 30% of businesses scored a higher resilience score.
This type of benchmark is meaningful when businesses are measured across an industry sector or geographic area.
For businesses measuring their resilience more frequently the resilience scores for each of the indicators are more valuable.
The adapt stage involves the identification of possible solutions and the development of resilience strategies which are aligned to the business’s business objectives.
Resilience strategies will usually represent a balance between addressing the strengths and weaknesses identified stakeholders’ reactions to the results, and available resources.
The business then creates work programs, assigns responsibilities and resources, and takes actions to improve their resilience.
Once a baseline of data has been established, businesses can then implement these solutions and then re-benchmark to identify if changes have been successful.