From risk management to strategic resilience

Business Resilience: Take A Choreographed Approach To Change

The pandemic has taught us a lot about change—and our ability to respond to it. Many companies struggled initially due in no small part to the very nature of traditional operations. The supply chain serves as a perfect example of this. To maintain a “safe” environment and promote operational resilience, predictability was baked right into its processes.

…a more choreographed approach is a much better option, especially when discussing the resiliency of business…

When the pandemic hit, that predictability was thrown out the window (as was resiliency), and store shelves were suddenly left barren. A single hiccup wasn’t what brought the supply chain to a screeching halt, however. As company leaders, CEOs understand this concept all too well. The culprit was multiple fractures in everything from component suppliers to the last mile of delivery…READ ON

From risk management to strategic resilience

In a volatile world, resilience is an increasingly critical prerequisite for corporate performance. The COVID-19 pandemic has caused a massive shock to public health, with dire human consequences. The crisis has dramatically demonstrated the sensitivity of economies to demand shocks as well as industry vulnerabilities to supply chain disruptions.

“The executives revealed that in the past, their risk management focus was on a small number of well-defined risks, primarily financial risks. They told us that now, risk is encompassing the broader mandate of resiliency management.”

FERMA–McKinsey survey

Furthermore, the pandemic spread in an environment defined by accelerating climate change and the increasingly urgent demand to reduce greenhouse-gas emissions.

On top of public-health and environmental pressures, organizations are subject to many business challenges, societal uncertainties, and geopolitical tensions. The disruptive currents include accelerating digitization, cyberthreats, and inflation and price volatility. The dynamic pace of change makes disruptions hard to predict, even as they grow in severity and frequency. Companies in all industries thus need to plan for the unexpected and build up their response capabilities in advance…READ ON

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