Resilience comes at a cost – Where is the trade off?
I have been coaching the management team on resilience and continuity for over a decade. Aspirations abound, I try to ask an important question, resilience at what cost?
Bluntly, whether it is quality, risk or resilience, the management appetite and threshold counts. I strongly believe that every management team should do a collaborative exercise (maybe in the form of gaming) to understand the trade off between what is at risk to what is the investment required. The outcome of this exercise is likely to aid the right investment by balancing the risk and reward. The whole exercise could be done as an approximation (financial numbers) but I am confident that such exercises makes immense sense while budgeting for resilience.
So, here are the few things that can be done to prepare and educate the resilience teams:
1. Create a strong awareness about the risk management process, more so from a continuity and resilience perspective
2. Establish a method to calculate the expected monetary gain/loss of risks surrounding resilience
3.Collaborate a response plan and its cost. The net of cost and benefit will provide a direction to take.
This is best done through certain gaming techniques (at all levels) as the subject of risk assessment can be more effective is performed as simulation, as close to real time as possible. This process of cost benefit awareness around resilience is expected to draw the right balance of risk and return, else, the initiatives will just remain as aspirational statements.
This blog was published as part of BCI Education Month 2018.
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Founder & Director