Operational Resilience Audit

Emerging Trends in Operational Resilience Auditing: A 2024 Report

Operational resilience has become a top priority for organizations across industries, prompting the rise of specialized auditing practices.

This report explores key emerging trends shaping the landscape of operational resilience auditing in 2024.

1. Increased Regulatory Scrutiny

Regulatory bodies worldwide are implementing stricter requirements for operational resilience, mandating regular audits and stress testing exercises. This drives demand for skilled auditors familiar with relevant regulatory frameworks.

2. Focus on Third-Party Risk Management

Modern businesses' interconnectedness amplifies third-party vulnerabilities' impact. Audits increasingly scrutinize third-party contracts, risk management procedures, and control environments to ensure supply chain resilience.

3. Integration with Cybersecurity Audits

The convergence of cyber and operational risks necessitates combined audits examining IT infrastructure, data security, and incident response capabilities alongside traditional operational resilience assessments.

4. Adoption of Technology-Assisted Auditing

Advanced analytics, artificial intelligence (AI), and automation are transforming how audits are conducted. These tools enable auditors to analyze vast datasets, identify hidden patterns, and streamline data collection, freeing time for deeper analysis and judgment.

5. Shift Towards Scenario-Based Testing

Static assessments give way to dynamic scenario-based testing that simulates real-world disruptions. This approach helps organizations refine their resilience plans and identify vulnerabilities under pressure.

6. Evolving Threat Landscape

Auditors must stay informed about emerging threats like climate change, geopolitical instability, and cyberattacks, continuously adapting their methodologies to address these dynamic risks.

7. Growing Demand for Skilled Professionals

The burgeoning field of operational resilience auditing creates a talent gap.

Training and certification programs are crucial to upskill existing professionals and attract new talent to meet the rising demand.

8. Emphasis on Business Continuity Management (BCM) Integration

Effective operational resilience relies on integrating resilience principles into existing BCM frameworks.

Auditors focus on ensuring BCM programs align with organizational objectives and address emerging threats.

9. Continuous Improvement and Learning

Operational resilience is an ongoing journey, not a destination.

Audits should emphasize the importance of continuous improvement, learning from incidents, and adapting resilience plans based on evolving threats and organizational changes.

10. International Collaboration and Harmonization

Harmonization across jurisdictions and industries is critical as regulations and best practices evolve.

International collaboration among regulators, auditors, and professional bodies is gaining momentum to facilitate knowledge sharing and consistent approaches.

By staying informed about these trends, audit professionals can adapt their practices, embrace new technologies, and contribute to building robust and adaptable operational resilience for organizations in the face of ever-changing risks.

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Internal vs External OR Auditing: Roles, Responsibilities and Ethics

While internal and external auditors contribute to assessing and strengthening operational resilience, their roles, responsibilities, and ethical considerations differ significantly.

Hence, it is helpful to understand the differences in roles, responsibilities and ethical considerations between IA and EA.

Internal Auditors (IA)

Roles of IA

• Independent assurance provider. Evaluating the effectiveness of existing resilience programs and controls within the organization.
• Risk consultant. Collaborating with business units to identify and mitigate operational risks impacting resilience.
• Process improvement advocate. Proposing recommendations to enhance OR posture and optimize processes.
• Change agent. Driving improvements in risk management culture and awareness across the organization.

Responsibilities of IA

• Conducting risk assessments and audits focused on operational resilience.
  Testing controls and processes designed to mitigate identified risks.
• Evaluating the adequacy and effectiveness of resilience plans and preparedness.
• Reporting findings and recommendations to management and relevant stakeholders.
• Monitoring and measuring the effectiveness of implemented improvements.

Ethical Considerations of IA

• Maintaining independence and objectivity: Avoiding undue influence from management or bias towards specific outcomes.
• Confidentiality: Protecting sensitive information obtained during audits while ensuring adequate reporting for oversight purposes.
• Competence and professional diligence: Continuously updating knowledge and skills to perform audits effectively and adhere to professional standards.
• Acting in the organisation's best interests: Balancing adherence to regulations with supporting the organization's long-term sustainability and ethical conduct.

External Auditors (EA)

Roles of EA

• Independent opinion provider: Offering an external perspective on the organization's overall risk management and resilience posture.
• Regulatory compliance assurer: Verifying adherence to relevant regulations and standards impacting operational resilience.
• Stakeholder assurance provider: Building confidence for investors, creditors, and other stakeholders regarding the organization's resilience capabilities.

Responsibilities of EA

• Conducting audits focused on specific regulatory requirements or contractual obligations related to operational resilience.
• Assessing the design and effectiveness of controls based on agreed-upon procedures.
• Reporting findings and opinions to relevant stakeholders, potentially including public disclosure.
• May not delve as deeply into operational details as internal auditors.

Ethical Considerations of EA

• Maintaining independence and objectivity. Avoiding conflicts of interest and undue influence from clients or regulators.
• Professional scepticism. Maintaining a critical questioning stance ensures audit conclusions are based on accurate and sufficient evidence.
• Confidentiality. Protecting sensitive information obtained during audits while fulfilling reporting requirements to designated parties.
• Communication and transparency. Communicating limitations and uncertainties associated with their audit findings and opinions.

Key Differences

• Focus.  Internal auditors focus on broader operational resilience within the organisation, while external auditors may have a narrower scope dictated by regulations or contracts.
• Reporting. Internal auditors report primarily to management and internal stakeholders, while external auditors report to their clients and potentially publicly.
• Depth of engagement. Internal auditors typically understand the organisation's internal workings and may conduct more in-depth assessments.
• Impact. Internal auditors directly impact internal change and improvement within the organisation, while external auditors provide assurance and may trigger regulatory consequences.

Collaboration and Coordination

While their roles and responsibilities differ, effective operational resilience relies on collaboration and coordination between internal and external auditors.

• Sharing information and insights. Internal auditors can provide external auditors valuable context and understanding of the organisation's operations and risk landscape.
• Joint assessments. In some cases, collaborative audits can leverage the strengths of both parties for a more comprehensive evaluation.
• Mutual respect and understanding. Recognising the value each type of auditor brings to building a robust operational resilience framework.

By understanding internal and external auditors' different roles, responsibilities, and ethical considerations, organisations can effectively leverage their combined expertise to assess and strengthen their operational resilience posture.

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Roles and Responsibilities of Operational Resilience Auditors

Operational resilience auditors ensure organisations can withstand disruptions and maintain critical operations. Their responsibilities involve diverse tasks, requiring a unique blend of technical expertise, communication skills, and problem-solving abilities.

Here is a breakdown of their key roles and responsibilities:

Assessment and Evaluation

• Identify and assess potential threats.   
  • Analyse various sources to understand internal and external factors that could disrupt critical operations.
    
    
• Evaluate existing resilience programs. 
  • Assess the effectiveness of existing controls, plans, and processes in mitigating identified risks.
    
    
• Perform risk assessments. 
  • Utilise various methodologies (e.g., scenario-based, data-driven) to quantify the likelihood and impact of potential disruptions.
    
    
• Conduct audits and investigations.
  • Analyse documentation, interview stakeholders, and test controls to evaluate program effectiveness and identify vulnerabilities.

Planning and Implementation

• Develop and recommend improvements. 
  • Based on their findings, propose enhancements to existing programs, controls, and processes.
    
    
• Collaborate with stakeholders. 
  • Engage with business units, risk management teams, and senior leadership to understand needs and ensure aligned recommendations.
    
    
• Develop and implement audit plans. 
  • Design the scope, objectives, and methodologies for conducting operational resilience audits.
    
    
• Manage and lead audit teams. 
  • Build, train, and motivate teams with diverse skill sets to achieve audit objectives effectively.

Communication and Reporting

• Communicate effectively. 
  • Present audit findings and recommendations clearly and concisely to various stakeholders, tailored to their needs and knowledge level.
    
    
• Prepare audit reports. 
  • Draft comprehensive and actionable reports documenting findings, conclusions, and recommendations, adhering to relevant standards and regulations.
    
    
• Facilitate discussion and action. 
  • Collaborate with stakeholders to address concerns, answer questions, and implement agreed-upon actions.

Continuous Improvement and Development

• Monitor and update assessments.
  • Keep updated with evolving threats, regulatory changes, and industry best practices, and refine assessments and recommendations accordingly.
    
    
• Stay informed about emerging trends. 
  • Learn and adapt continuously to new technologies, techniques, and methodologies in operational resilience auditing.
    
    
• Share knowledge and expertise. 
  • Contribute to the profession's development by sharing best practices, participating in professional organisations, and mentoring others.

Additional Responsibilities and Specific Role

• Third-party risk assessments. 
  • Evaluate the resilience of critical vendors and suppliers.
    
    
• Regulatory compliance audits. 
  • Ensure adherence to relevant regulations impacting operational resilience.
    
    
• Information security audits. 
  • Assess the cybersecurity posture of systems and controls related to operational resilience.

Summing Up ...

Overall, operational resilience auditors are critical in protecting organisations from disruptions and ensuring business continuity.

They require a comprehensive skill set, critical thinking abilities, and the ability to effectively communicate complex information to diverse stakeholders.

As the field evolves, their responsibilities will continue to adapt and expand, requiring continuous learning and development to address emerging challenges and effectively contribute to organisational resilience.

	Please feel free to send us a note if you have any of these questions.

These Operational Resilience Audit (ORA) courses are designed with ORA and ancillary professionals operating globally.

Courses are available in 1, 2 and 4 (modules) days and are divided into three levels of competencies.

At the end of each course, participants are assessed through assessments or examinations to ascertain their level of competency. They can look forward to receiving an internationally recognised ORA certification through any of our ORA certification courses.

So, which level would be best for you? Perhaps the table below might help

Find Out More ...

Attend ORA Course
Name of Course	OR Expert Auditor	OR Auditor	OR Planner
Course Code	ORA-400/ 5000	ORA-300	ORA-200
Competency Level	Know-Do-Manage	Know-Do	Know
Course Fees (Singapore Dollar)
Blended Learning	$3,850	$2,400	$1,650
Hybrid Learning	$4,150	Online Only	Online Only
Certification Application and Eligibility
Certification Eligibility
Certification Type	Operational Resilience Audit Expert	Operational Resilience Audit Specialist	Operational Resilience Certified Planner
Certification Application Fee	SGD 150	SGD 75	SGD 50
OR Body of Knowledge	8 of 15 OR BoK	4 of 15 OR BoK	Not Required
Year of Experience	> Three years	> One year	Not Required

More Information About Operational Resilience ORA-5000 [ORA-5] or ORA-300 [ORA-3] Course

To learn more about the course and schedule, click the buttons below for the ORA-3 Blended Learning ORA-300 Operational Resilience Audit Implementer course and the OR-5 Blended Learning ORA-5000 Operational Resilience Audit Expert Implementer course.

	If you have any questions, click to contact us.

Operational Resilience Audit Learning Roadmap

Operational Resilience Audit Certification Level Vs Expertise Level and Competency Level

Operational Resilience Audit Competency Level Vs Training Requirement

Linking closely to the Operational Resilience Body of Knowledge or OR BoK, there are two building blocks to support our participants' learning journey. 

One is the Competency Level or CL, and the other is the Level of Expertise or Expertise Level.

 

Expertise Level

All training syllabi within BCM Institute have been designed to assist professionals in upgrading their competency using the "Know", "Do", and "Manage" level of expertise.

This applies to the Operational Resilience (OR) domains respective areas, including the Operational Resilience Audit (ORA).

 

For professionals who want to be acknowledged for their fundamental understanding of operational resilience. It usually includes personnel who are involved in the OR project or programme but are led by a designated OR professional (For example, the Operational Resilience Coordinator at the department or division level and for senior management being led by the Organisation Operational Resilience Coordinator))

 

For professionals who would like to be acknowledged for their understanding and training of the intricacies and maintenance of their organization's plans, be it for OR or ORA. To obtain any of the disciplines’ (OR or ORA) Specialist certification, one has to have at least one year of experience in the discipline of choice, pay an application fee and pass the relevant qualifying examination.

 

Professionals tasked to oversee and manage the organisation’s program and plans would like to know how to plan, implement, and sustain the program. They will be given the Expert certification only upon passing the appropriate qualifying Expert examination and demonstrating to the Certification Review committee that they have at least three years of experience and paying an application fee.

Comparison Between Expertise, Competency and Certification Level

 

Competency Level	Expertise Level	Course Level	Certification Level (OR)
1	Know	Foundation	Certified Planner
2	Do	Intermediate	Audit Specialist
3	Manage	Advanced	Audit Expert

 The Competency Level (CL) is a set of building blocks for BCM Institute's training and certification requirements. Each subject domain is broken into three distinct levels:

1. Foundation (CL 1)
2. Intermediate (CL 2)
3. Advanced (CL 3)

The breakdown for each of the domains for ORA [Operational Resilience Audit] are CL 1ORA, CL 2ORA and CL 3ORA

	Expertise Level	Know	Do	Manage
Domain (Discipline)	Course Code	Competency Level (with Code)
Operational Resilience Audit	ORA	CL 1 ORA	CL 2 ORA	CL 3 ORA

The arrangement of the tiers represents the increasing specificity and specialization of the operational Resilience (OR) and Operational resilience audit (ORA) skills and knowledge content.

Find out more about Blended Learning ORA-5000 [ORA-5] & ORA-300 [ORA-3]
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