BrazilBuilding dual resilience with Organization and Operational Resilience
In today’s fast-paced and unpredictable business environment, the topics of Organization Resilience and Operational Resilience have become essential pillars of modern business strategies. But what are they exactly? Muhammad Kashif from ECOVIS Al Sabti walks through their importance, differences and similarities.
The business environment has never been as unpredictable and volatile as it is today. That means in turn that organizations must be well-prepared to face threats and risks, whether it is a cyberattack crippling IT systems, a supply chain bottleneck halting production, or an economic downturn shaking markets.
Enter organization resilience and operational resilience – two buzzwords that have become essential in the dictionary of modern business strategy. While they sound similar, they serve distinct purposes and address different aspects of an organization’s ability to withstand and adapt to challenges.
Organization resilience
Organization resilience refers to the holistic ability of an organization to anticipate, prepare for, respond to, and adapt to disruptions, both incremental and sudden, to sustain operations and achieve long-term success. It encompasses strategic, financial, cultural, and operational dimensions, ensuring that the organization cannot just survive but also thrive in the face of adversity.
The ISO 22316:2017 standard, ‘Security and Resilience – Organizational Resilience – Principles and Attributes’, provides a comprehensive framework for building organizational resilience. It emphasizes the importance of leadership, culture, and proactive risk management as key enablers of resilience.
According to ISO 22316, a resilient organization is one that can “absorb and adapt in a changing environment,” highlighting the need for adaptability and continuous improvement.
Operational resilience
Operational resilience, on the other hand, focuses specifically on the continuity of critical business operations and services during disruptions. It ensures that an organization can withstand and recover from adverse events while minimizing impact on customers, stakeholders, and regulatory compliance.
In the financial services sector, for example, operational resilience has become a regulatory priority. The Bank of England’s Operational Resilience Policy and the European Union’s Digital Operational Resilience Act (DORA) mandate that firms identify critical business services, set impact tolerances, and ensure robust incident response capabilities. These frameworks underscore the importance of safeguarding operational continuity in highly regulated industries.
The key differences between the two concepts
While both concepts aim to enhance an organization’s ability to manage disruptions, they differ in several key aspects.
How they interconnect
Operational resilience is a subset of organization resilience. While the former ensures the continuity of critical operations, the latter provides the overarching framework for building a resilient organization. For example, a company with strong operational resilience may successfully navigate a cyberattack, but without organizational resilience, it may struggle to adapt to long-term shifts in the market or industry.
Consider the Covid-19 pandemic: organizations with robust operational resilience were able to maintain critical services, but those with strong organizational resilience were better positioned to pivot their business models, embrace remote work, and capitalize on emerging opportunities.
Building resilience – a dual approach
To effectively manage disruptions, organizations should adopt a dual approach that integrates both organization resilience and operational resilience.
Adopt international standards
Leverage frameworks like ISO 22316 for organizational resilience and ISO 22301 (Business Continuity Management Systems) for operational resilience. These standards provide best practices for identifying risks, building capabilities, and ensuring continuous improvement.
Identify critical business services
Conduct a thorough assessment to identify and prioritize critical operations. This is a cornerstone of operational resilience and ensures that resources are allocated effectively.
Foster a resilient culture
Leadership plays a pivotal role in embedding resilience into the organizational culture. Encourage proactive risk management, collaboration, and innovation at all levels.
Invest in technology and infrastructure
Robust IT systems, cybersecurity measures, and supply chain redundancies are essential for operational resilience. At the same time, digital transformation can enhance organizational resilience by enabling agility and adaptability.
Test and refine plans
Regularly test business continuity and incident response plans to identify gaps and areas for improvement. Simulations and tabletop exercises can help prepare teams for real-world scenarios.
Conclusion
In an era defined by volatility and uncertainty, resilience is no longer optional, it is a strategic imperative. While organization resilience and operational resilience serve different purposes, they are complementary and essential for building a robust, future-ready organization. By understanding their differences and interconnections, leaders can develop a comprehensive resilience strategy that ensures both short-term continuity and long-term success.
Resilience is defined as the capacity to absorb stress, recover critical functionality, and thrive in altered circumstances. Whether it is navigating a global crisis or adapting to market shifts, organizations that prioritize resilience will be better equipped to turn challenges into opportunities.
By adopting a dual focus on organization resilience and operational resilience, businesses can not only survive disruptions but also emerge stronger, more agile, and better prepared for the future.
