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Why do some businesses manage to succeed despite potential threats and disruptive events, while others fail? The answer lies in business resilience. Here's how to create an appropriate business resilience plan to be prepared for emergencies and unexpected events
Business resilience does not describe a state, but rather a dynamic capability of companies to react and adapt to new challenges and find appropriate solutions on an ongoing basis. The Covid-19 pandemic, the Ukraine conflict, and cyber-attacks all demonstrate the importance of business resilience today. A multitude of factors contribute to strengthening business resilience in different organisations.
Business resilience is the combination of various measures such as business continuity, disaster recovery, crisis management, risk management, and incident response planning. The basis is a business resilience plan or a business continuity pan. A business continuity plan is the basis for how a company will maintain operations during a crisis or other exceptional circumstances. It includes a detailed strategy for preventing a sudden business interruption and disaster recovery strategies. The business resilience plan goes one step further than the business continuity plan. It covers not only business recovery, but also post-disaster strategies.
The business resilience plan originally evolved from the disaster recovery plan. However, the former is more comprehensive and contains guidance for different areas of the business.
The business resilience plan includes, for example, general business processes, product manufacturing, human resources, supply chain resilience, cybersecurity resilience and financial stability - in other words, contingency measures for every aspect of the business that a crisis will impact.
Business continuity planning includes a checklist of instructions, processes, tools and resources for recovery from a business interruption. These strategies cover both short-term and long-term outages. In addition, managers designate responsible parties and key individuals for business continuity planning.
Risks can be contained, but they can never be completely predicted or eliminated. A company that does not have crisis management in place risks longer downtimes and thus financial losses. In case of serious events, the financial damage without continuity planning may be so fatal, that a company is threatened with insolvency. Furthermore, the competitiveness, customer loyalty and ultimately the success of a medium-sized company depend on a quick recovery after an outage. Winners are companies that effectively overcome negative challenges and emerge even stronger from the crisis. They benefit from an improvement in their reputation, market value and customer confidence.
The importance of business resilience has increased significantly in recent years. Faced with disruptive events, political unrest and conflict, more and more companies need to develop a business resilience plan. But how do companies identify which crises are actually a potential threat? Find out how other companies of the same industry and size are identifying risk factors and building resilience in Dun & Bradstreet's report.
The key steps in creating a business resilience plan are as follows:
Using timely and relevant data from Dun & Bradstreet, companies can make the right decisions and create an effective business resilience plan. This improves your resilience and prepares you for emergencies.
For example, data makes supply chain and compliance risks visible. You check new and existing customers’ financial stability and adherence to compliance guidelines. You identify gaps in supplier management and thus reduce the likelihood of business interruptions.
Learn how to improve your company's resilience in this report with over 3,000 business leaders surveyed. You can download the report for free here
The following article will also help you to implement business resilience in a meaningful. Read more