Share it with your network!
Help your friends to new knowledge
Recent events, such as the Covid-19 crisis, the conflict in Ukraine and the earthquakes in Turkey and Syria, have proven that business resilience is essential not only to survive, but to continue operating through and recover from difficult circumstances.
The term ‘resilience’ derives from psychology and describes the process of changing behaviours to overcome unexpected challenges. In the context of business, this means that resilient companies can identify risks early, adapt to negative external changes and maintain business operations during difficult situations. To ensure a company is as resilient as possible, leaders need to implement strong risk and crisis management processes. In our recent report, ‘Data-Driven Resilience’, based on a survey of 3,000 business leaders, you can find out how companies like yours are strengthening their business resilience.
To enhance business resilience, leaders and their employees should consider the seven pillars of resilience, a popular model developed by Ursula Neuber. The seven pillars are:
Unlike business continuity, business resilience goes one step further. Business continuity is based on the business continuity plan (BCP). It is the company’s ability to resume business operations quickly after a failure or disruption. The aim is to respond appropriately to disruptive events and maintain an acceptable level of service or production after the disruption. One aspect of business continuity is disaster recovery, which involves restoring the functionality of the IT infrastructure after an outage or cyber-attack.
Business resilience goes beyond recovering from a disruption. It pursues strategic initiatives to turn challenges into new opportunities. The focus is on defining measures to emerge stronger from future crisis’. Business resilience promotes post-crisis strategies to avoid costly failures and secure vulnerabilities. An agile company therefore first ensures business continuity to develop business resilience.
Companies increasingly face challenging situations that can disrupt operations, damage reputations or bring other threats to life. Flexibility is the foundation of a resilient organisation, enabling businesses to adapt to changing circumstances and develop new strategies.
First, a distinction is made between acute, sudden crises and those that are bubbling under the surface for a long time.
<h3>Managing Sudden Crises</h3>
Acute crises are rare but sudden and unexpected, resulting in disruption to production or operations. They require rapid response and action in the specific situation. Examples of acute crises are:
There are also crises that develop over the long term and are not perceived in time. Preventive measures, such as risk monitoring and third-party performance, prove useful in these situations. Examples of creeping crises are:
How companies prepare for and respond to events such as data breaches or quality defects determines how well they recover afterwards. Resilient companies respond to challenges with flexible solutions, for example by developing products that are adapted to the current situation, and finding alternative suppliers. These companies thus have a competitive advantage over other less agile organisations. By building resilience, companies avoid reputational damage and financial losses.
Regardless of how extreme a disruption is, we show in a detailed report how to prepare your company for any situation with appropriate data management. Find out which threats have the biggest impact on businesses.
Business Resilience should be applied to all areas of a company to help in emergency situations:
The following factors contribute to improving the resilience of a company:
Dun & Bradstreet helps businesses minimise risk, make the right decisions and strengthen business resilience with best-in-class global data and insights.
In the following article, you will learn how to identify and assess risks, how to plan and implement business resilience in individual business areas and which success factors lead to higher resilience.