What Is Resilience?
What is Resilience? – “The ability to react and learn from an event, risk or failure while continuing to function above a known baseline for a pre-defined period of time”
With recent events requiring an almost overnight pivot to digital and the deployment of new innovations to stay open remotely, institutions have onboarded, through necessity, a greater exposure to specific risks e.g., non-financial and 3rd Party risk.
Firms need to think harder about where resilience fits in their organisations this is especially relevant for regulated entities who will need to use a defined measure of their resilience via impact tolerance and ultimately for competitive advantage – in nature, as an example, eco-systems which are able to rapidly adapt to adversity not only survive to thrive in the long term.
Complex Systems Are Fragile
As we live through an era of significant evolution the speed of digital change will benefit society immensely, yet this benefit is inversely proportional to the speed that risks crystallise – to counter this adaptive capacity must be built into the system.
Our Operational Resilience Baseline Impact Tolerance (ORBITT) is used to help organisations surface unseen vulnerabilities and non-financial risks. The outputs are used to inform firm-wide strategy and in the development of exploratory scenarios and setting of impact tolerances.