Roads to Resilience

Structure of the report

This report is research-based, but written to provide pragmatic advice for risk professionals and board members (both executive and non-executive directors), as well as other senior management. It is aimed at those who want to ensure that risk management and resilience permeate their organisations to constantly protect and promote brand and reputation. It must be stressed that achieving resilience is challenging and it requires significant board-level support and direction. To show how the eight case study organisations achieved increased resilience, this report has the following sections: • Executive Summary: this gives an overview of the key findings of the research for board members and other senior managers. • Section 1: this introduction explains the rationale of the research and is designed to give risk professionals and board members an overview of the main findings of the research and structure of the remainder of the report. • Sections 2-6: these describe each of the five principles of resilience, giving examples from the eight case studies. These sections are designed to give risk professionals a full understanding of what resilience is, the advantages it brings to an organisation and how it can be achieved through management of the four business enablers. • Section 7: this section evaluates the key characteristics of resilience and explains the implications for risk professionals. It provides many

examples of the practices that organisations have implemented to achieve the principles of resilience in a structured and comprehensive manner. • Section 8: this section is important for board members because it considers the actions that should be taken to enhance the business enablers and thereby increase the resilience of an organisation. • Appendices: there are two appendices, the first of which comprises the case studies (Appendix A). These describe how each organisation manages risk and increases resilience. Readers are recommended to read case studies outside their sector, as these can stimulate ideas on different approaches to achieving resilience. Appendix B provides an explanation of the research methodology used in undertaking the research and generating the ‘ Roads to Resilience’ report. Failure to attain the necessary level of resilience can undermine an organisation’s ability to achieve its business goals. In extreme circumstances, it can result in disaster of a magnitude that undermines the status of the organisation as a ‘going concern’ and threatens its very existence. Table 1.3 lists the findings of the research in terms of the outcomes associated with increased resilience that support future success. Resilient organisations not only set goals, but they also proactively seek information about the risks that can either impede or enhance success, initially by having effective ‘risk radar’.

Table 1.3 Organisational resilience and associated outcomes

Prevent, Protect and Prepare

• optimal utilisation of resources and assets to take advantage of opportunities • supportive relationships and networks to build successful brands and reputation

• controls in place for the expected risks, as described in the risk register • robust risk awareness to assist with design and implementation of strategy

Respond, Recover and Review

• crisis plans to respond successfully to adversity and achieve enhanced profile • identified lessons and amended business model to gain competitive advantage

• ability to respond to a crisis, cope with the unexpected and learn lessons • knowledge of emerging risks

to help develop and test crisis management plans

21

Roads to Resilience: Building dynamic approaches to risk to achieve future success