[OR] [MLRE] [E1] [C7] Establishing Organisational Goals for Operational Resilience

Chapter 7

  Establishing Organisational Goals for Operational Resilience

Introduction

As a licensed reinsurer operating within Malaysia’s financial ecosystem, Malaysian Life Reinsurance Group Berhad plays a critical role in supporting insurers, protecting policyholders, and maintaining confidence in the broader financial system.

In line with the principles of ISO 22316 (Organisational Resilience) and the operational resilience expectations issued by Bank Negara Malaysia, resilience must be anchored in clearly defined organisational goals. Without structured goals, resilience initiatives risk becoming fragmented, compliance-driven exercises rather than strategic enablers of long-term sustainability and stakeholder trust.

The purpose of this chapter is to establish a clear framework for defining, aligning, and integrating operational resilience goals within Malaysian Life Reinsurance’s corporate strategy, risk management practices, and governance structures.

By the end of this chapter, readers will understand how resilience objectives translate regulatory requirements into measurable organisational outcomes, how these goals support critical business services, and how leadership can embed resilience as a core organisational capability rather than a reactive control mechanism.

1. Linking Resilience Goals to Strategic Direction

Operational resilience goals must not exist in isolation. They should directly support:

• Corporate strategy and long-term growth ambitions
• Risk appetite and tolerance levels
• Financial sustainability and capital strength
• Reputation and stakeholder confidence
• Regulatory compliance obligations

For Malaysian Life Reinsurance, resilience objectives should ensure the continuity of critical reinsurance functions, including underwriting, claims recovery, treaty administration, financial reporting, and regulatory engagement. The organisation’s goals should reflect its systemic importance to cedants and the broader insurance market.

Key principle: Resilience goals must protect what matters most to the organisation and the financial system.

2. Regulatory Alignment: ISO 22316 and Bank Negara Malaysia

ISO 22316 Alignment

ISO 22316 emphasises:

• Leadership commitment
• Shared vision and values
• Informed decision-making
• Adaptive capacity
• Organisational culture

Organisational goals must therefore promote:

• Proactive risk identification
• Cross-functional collaboration
• Learning from disruptions
• Agility in responding to emerging threats

Bank Negara Malaysia Operational Resilience Expectations

Bank Negara Malaysia requires financial institutions to:

• Identify critical business services
• Set impact tolerances
• Conduct severe but plausible scenario testing
• Ensure accountability at the Board and senior management level

Resilience goals must therefore incorporate measurable objectives that demonstrate compliance while strengthening operational stability.

3. Core Organisational Goals for Operational Resilience

Malaysian Life Reinsurance should establish resilience goals across five strategic dimensions:

3.1 Continuity of Critical Business Services

Goal: Ensure that identified critical business services remain within approved impact tolerances under severe but plausible disruptions.

Key focus areas:

• Maximum tolerable disruption period (MTPD)
• Data integrity and availability
• Recovery time objectives (RTO)
• Service-level commitments to cedants

3.2 Governance and Accountability

Goal: Embed clear ownership of operational resilience at Board and Senior Management levels.

Key focus areas:

• Defined resilience roles and responsibilities
• Board oversight and reporting dashboards
• Integration into risk and compliance committees
• Escalation protocols during crisis events

3.3 Technology and Infrastructure Resilience

Goal: Maintain robust, secure, and recoverable technology platforms supporting underwriting, actuarial modelling, finance, and regulatory reporting.

Key focus areas:

• Cyber resilience capability
• Third-party dependency management
• System redundancy and failover capability
• Cloud and data backup governance

3.4 People and Organisational Capability

Goal: Develop a workforce that is prepared, trained, and empowered to respond effectively during disruptions.

Key focus areas:

• Crisis management training
• Cross-skilling and succession planning
• Remote work readiness
• Clear communication channels

3.5 Financial and Capital Resilience

Goal: Preserve financial stability during stress events.

Key focus areas:

• Liquidity planning
• Capital adequacy monitoring
• Stress testing scenarios
• Reinsurance counterparty risk monitoring

4. Characteristics of Effective Resilience Goals

To ensure effectiveness, organisational resilience goals must be:

• Strategically aligned – Linked to corporate objectives
• Measurable – Supported by defined KPIs and KRIs
• Time-bound – With target implementation timelines
• Board-approved – Formally endorsed and monitored
• Continuously reviewed – Adapted to emerging risks

Resilience goals should be reviewed annually or when significant operational or regulatory changes occur.

5. Embedding Goals into Enterprise Practices

Resilience goals must cascade into:

• Risk management frameworks
• Business continuity planning
• Incident management processes
• Third-party risk management
• Technology investment roadmaps
• Performance scorecards

Operational resilience becomes sustainable only when it is integrated into daily decision-making rather than activated only during crises.

6. Measuring Progress and Maturity

To ensure continuous improvement, Malaysian Life Reinsurance should:

• Conduct annual resilience self-assessments
• Perform independent assurance reviews
• Track incident response performance
• Review lessons learned from disruptions
• Benchmark against industry best practices

Over time, resilience maturity should progress from compliance-driven readiness to adaptive and anticipatory capability.

Establishing organisational goals for operational resilience is not merely a regulatory requirement; it is a strategic commitment to long-term stability, stakeholder trust, and sustainable growth. For Malaysian Life Reinsurance, clearly articulated resilience goals provide the foundation for safeguarding critical services, protecting cedant relationships, and upholding financial system confidence even during severe disruption. When resilience objectives are embedded into governance, culture, and operational processes, they transform from compliance checkpoints into competitive strengths.

As the organisation continues to evolve in an increasingly complex risk environment, resilience goals must remain dynamic, measurable, and aligned with strategic priorities. By anchoring operational resilience in clear organisational objectives, Malaysian Life Reinsurance positions itself not only to withstand shocks but to emerge stronger, more adaptive, and better prepared for the uncertainties ahead.

For organisations looking to accelerate their journey, BCM Institute’s training and certification programs, including the OR-5000 Operational Resilience Expert Implementer course, provide in-depth insights and practical toolkits for effectively embedding this model.