Operational resilience is an organization’s ability to detect, prevent, respond to, recover and learn from operational disruptions that may impact delivery of important business and economic functions or underlying business services.
The key components of operational resilience - which include defining and understanding important business services and impact tolerance, as well as completing end-to-end mapping, scenario testing, and regular self-assessments - are essential guideposts on the road to resiliency.
Resilience is ingrained in our vocabulary, especially in today’s challenging business landscape. In its simplest form, resilience can be defined as the ability to recover from setbacks. Unlike risk, which has a probabilistic component and creates significant uncertainty, operational resilience must be contemplated as an inevitability.
Systems will fail, cyber-attacks will be successful, and pandemics will occur. Having a firm understanding of how to minimize the impact of a disruption to your external stakeholders and the broader economy, knowing where your organization’s vulnerabilities lie, and developing your foundational elements (e.g., cyber, business, third-party, and technology resilience) will help your organization recover more quickly and minimize customer harm.
Business Continuity Management (BCM) is the design, development, implementation and maintenance of strategies, teams, plans and actions that provide protection over, or alternative modes of operation for, those activities or business processes which, if they were to be interrupted, might bring about seriously damaging or potentially significant loss to an enterprise.
All sectors and sizes of companies can benefit from a BCM program. An operational resilience program can enhance and extend traditional BCM practices and concepts by incorporating various approaches such as testing extreme-but-plausible scenarios, front-to-back process mapping and aligning all aspects of cyber, third-party and technology resilience, as illustrated in Protiviti’s Operational Resilience framework.
As one of only 11 Premium Associate Members, Protiviti actively engages with SIFMA committees and working groups, share insights and expertise on crucial industry developments, speak at conferences and events, and contribute to SIFMA’s advocacy efforts for effective and resilient capital markets.