What is operational resilience?

Nita Kohli

Operational resilience has emerged as a crucial multi-million dollar investment across major industries. Although one of the primary responsibilities of a chief executive officer (CEO) is to generate long-term value for shareholders, it is worth remembering that only 52 companies listed on the Fortune 500 in the mid-1970s still maintain their presence today. In the complex landscape of contemporary business, predicting, prioritising and managing risk poses an ongoing challenge for CEOs. Unfortunately, amid competing priorities, investment in resilience may not take a prominent position on an organisation’s strategic agenda – that is, until a crisis or disruption compels attention or regulatory requirements mandate action.

Given this landscape, it is imperative that organisations continue to deliver services to their customers regardless of any disruption; this is an uncompromising reality. Nevertheless, despite its importance, the interpretation of operational resilience remains notably diverse. Since the emergence of the first operational resilience-related consultation papers in the later 2010s and subsequent regulatory initiatives within the financial industry, clarity remains