Operational resilience (OR) reshapes how a financial institution views disruption, accountability, and systemic vulnerability. It introduces:
Such structural change naturally generates resistance.
Resistance is not necessarily opposition—it is often uncertainty, competing priorities, or perceived duplication. Supervisory expectations influenced by institutions such as the Bank for International Settlements have elevated operational resilience to strategic importance, but internal alignment does not occur automatically.
This chapter explores practical strategies to overcome resistance and secure sustained executive sponsorship.
Before addressing resistance, leaders must understand its root causes.
1. Perceived Duplication
“We already have Risk, BCM, and ITDR—why add another layer?”
2. Resource Competition
Business units prioritise revenue generation, digital transformation, and cost optimisation.
3. Fear of Exposure
Service mapping and stress testing may reveal weaknesses or concentration risks.
4. Governance Fatigue
Executives may resist new committees or reporting requirements.
5. Lack of Tangible ROI
Resilience investment is preventive and scenario-based, not revenue-generating.
Recognising these drivers allows targeted engagement rather than defensive justification.
Operational resilience must not be positioned as:
Instead, it should be framed as:
When leadership understands OR as risk mitigation for franchise survival, sponsorship becomes more likely.
Strong executive sponsorship is the single most important success factor.
Characteristics of an Effective Sponsor:
To secure sponsorship:
Executive sponsors must see OR as risk mitigation for both the institution and their personal accountability.
A strong business case addresses four dimensions:
1. Regulatory Risk
Highlight supervisory expectations, thematic reviews, and peer enforcement actions.
2. Financial Risk
Model potential revenue loss from prolonged CBS disruption.
3. Reputational Risk
Demonstrate customer attrition and market confidence implications.
4. Operational Efficiency
Show how dependency mapping improves process transparency and reduces duplication.
Quantifying potential exposure transforms OR from abstract theory into measurable risk management.
Enterprise-wide rollouts may overwhelm stakeholders.
A pragmatic approach is to:
Early wins demonstrate practical value and reduce scepticism.
Proof of concept builds credibility.
Business leaders may fear operational disruption from workshops and testing.
Effective engagement strategies include:
Operational resilience must be seen as supportive—not intrusive.
Scenario testing reveals weaknesses. Leadership must foster an environment where:
Psychological safety enhances participation quality and testing realism.
If vulnerabilities are concealed, resilience maturity stagnates.
Operational resilience should be embedded into:
When OR becomes part of transformation governance, it transitions from reactive assessment to proactive design.
This integration reduces resistance by positioning OR as an enabler of sustainable innovation.
Board awareness accelerates executive alignment.
Effective Board engagement includes:
When Boards actively challenge resilience assumptions, senior management commitment strengthens.
Board engagement reinforces sponsorship at the highest level.
To reduce resistance related to committee overload:
Efficiency in governance design improves executive receptiveness.
Initial sponsorship may weaken once regulatory deadlines pass.
To sustain commitment:
Operational resilience must remain visible within enterprise risk discussions.
Ongoing reporting discipline prevents momentum decline.
Signs that sponsorship is firmly established include:
When OR discussions become routine at senior levels, resistance diminishes.
Resistance is a natural response to structural change. It signals organisational impact.
Overcoming resistance requires:
Operational resilience is not implemented through policy alone—it is embedded through leadership commitment.
Key Insight:
Operational resilience becomes sustainable not when resistance disappears, but when senior leadership recognises that protecting critical business services is a strategic obligation requiring visible sponsorship and institutional accountability.
Building Operational Resilience in Financial Institutions: A Practical Guide to Governance, Team Structure and Sustainable Implementation |
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To learn more about the course and schedule, click the buttons below for the OR-300 Operational Resilience Implementer [OR-3] course and the OR-5000 Operational Resilience Expert Implementer [OR-5] course.
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