Roads to Resilience

Matrix to illustrate resilience

Figure 8.1 illustrates the nature of organisational resilience. It plots increasing standards of control on the horizontal axis against increasing ability to respond to the unexpected on the vertical axis. It shows that an organisation with good standards of control will be ready for expected adverse events, challenges or situations and is described as ‘Risk Compliant’. An organisation that has a high ability to cope with unexpected adverse events will have a successful set of crisis management arrangements in place and is described as ‘Risk Responsive’. Organisations with inadequate standards of risk control and an inability to cope with unexpected adverse events are on the ‘ Roads to Ruin’ , as identified in the 2011 research published by Airmic. Organisations may be ‘Risk Compliant’, but they are only prepared for the expected risks listed in the risk register. In these circumstances, the risk register can provide a source of false security. Conversely, organisations that believe they have well- developed crisis management plans may be insufficiently proactive in the management of risks.

Being able to ‘respond, recover and review’ is not sufficient on its own. The ‘Risk Responsive’ approach ignores the advantages of the ‘prevent, protect, prepare’ activities that are designed to reduce the likelihood and consequences of adverse events. Figure 8.1 indicates that when the organisation has combined risk control with risk response, it is following the ‘ Roads to Resilience’ approach and is prepared for the expected, as well as being able to cope with the unexpected. Such an organisation will ultimately benefit from the challenges encountered and come back stronger when faced by adverse circumstances. Table 8.6 summarises the resilience outcomes in terms of the benefits that result. These benefits arise from enhancement of the four business enablers and are aligned with the achievement of the five resilience principles.

...the risk register can provide a source of false security...

Figure 8.1 The resilience matrix

Increasing ability to respond, recover and review successfully following a crisis

‘Roads to Resilience’ Robust precautions to protect r esources and assets and rehearsed plans to respond to a crisis

‘Risk Responsive’ Ready to successfully respond to a crisis, but protection of resources and assets inadequate

‘Roads to Ruin’ Poorly prepared for foreseeable adverse events and unable to cope with a crisis

‘Risk Compliant’ Prepared only for those adverse circumstances identi ed and evaluated in the risk register

Increasing standard of control to prevent, protect and prepare for expected risks

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