“So why is business resilience important?”
“Why are businesses beginning to focus more on resilience?”
“Is business resilience something that can be measured, and then possibly improved?”
The three questions above are common questions which businesses struggle to answer. As we review the major disaster events within recent years, businesses have become much more focused on their ability to respond to disasters. Not only have disaster events seem to occur with an increased frequency, events seem to be much more impactful as businesses realize the increasing reliance on resources (i.e. critical infrastructure, key resources, technology, etc.) We can also state with confidence that disaster events are much more complex as well, given the fact that both the private and public sectors must work together and partner in the response to large-scale disaster events.
As we have seen, disaster events come in many different forms and are either man-made (i.e. security breaches, terrorism, etc.) or born from nature (i.e severe weather events). Regardless of the type of disaster, businesses which devote resources and staff toward disaster preparedness understand the importance of Business Resilience and are much better equipped for future disaster events.
So do businesses understand just how important resilience is?
We have seen that businesses often struggle to priorities and allocate resources to building resilience, given the difficulty of demonstrating progress or success. This is partly because emergency management and business continuity programs have to compete for resources, and compete against “profit-driven” activities for which, there are metrics for evaluating whether they have produced financial growth or not.
Resilience however, focuses on social and cultural factors within businesses, which are much more difficult to measure and to link to financial outcomes. One example would be the difficulty of quantifying how the cost of running an emergency exercise affects a business’s’ resilience and their bottom line.
Businesses must be able to demonstrate progress towards becoming more resilient by quantifying improvements in their resilience, and tracking changes in that measurement over time.
The solution that we at ThinkGRC propose provides businesses with the ability to accurately measure resilience as well as determine which social and cultural factors require attention and enhancement, allow the business to increase its resilience score and posture.