What does operational resilience refer to?

Operational resilience specifically relates to an organization's capability to withstand, respond to, and recover from a range of operational disruptions. This concept goes beyond just managing risks; it encompasses the proactive measures taken to anticipate potential threats, the preparation efforts to mitigate these threats, and the recovery processes that allow the organization to return to a normal state following a disruption.

In an environment where unexpected events can lead to significant operational challenges, being operationally resilient means that a company has established frameworks and practices that ensure continuity of operations even in difficult circumstances. This includes effectively managing supply chain disruptions, cybersecurity threats, natural disasters, and other incidents that can interrupt business processes.

While reducing operational costs, enhancing product offerings, and adapting to market conditions are important aspects of business strategy, they do not fully encapsulate the essence of operational resilience, which is fundamentally about the capacity to operate reliably in the face of unforeseen challenges.