[Plan] [OR] [P1-S4] Building a Strong Foundation with Effective Governance

Develop and Embed Governance: The Bedrock of Operational Resilience

Operational resilience (OR) is quickly becoming a top priority for organizations across all industries. In today's complex and interconnected world, the ability to withstand and recover from disruptions is essential for business continuity and long-term success.

However, simply implementing an OR framework is not enough. To ensure the effectiveness of your OR efforts, you need a strong foundation of governance.

Governance provides the structure, clarity, and accountability necessary to guide your OR program and ensure it aligns with your business objectives.

This article is a pre-reading for the Operational Resilience Expert Implementer course participants.  Appointed OR team leaders often underestimate the importance of investigating OR governance.

What is OR Governance?

OR governance is the system of rules, processes, and controls that guide the implementation and execution of your OR framework. It defines roles and responsibilities, establishes risk tolerances, and ensures compliance with relevant regulations.

Why is OR Governance Important?

Practical OR governance provides several benefits, including:

• Improved decision-making.  Clear policies and procedures help leaders make informed decisions about risk management, resource allocation, and incident response.
• Enhanced accountability: By defining roles and responsibilities, OR governance ensures everyone knows who is accountable for different OR program aspects.
• Reduced risk. Strong governance helps to identify and mitigate potential disruptions, reducing the likelihood of their occurrence and minimizing their impact.
• Increased efficiency: Defined processes and procedures streamline OR activities, increasing efficiency and cost savings.
• Improved stakeholder confidence. Effective governance demonstrates to stakeholders that your organization is taking OR seriously, which can boost confidence and attract investment.

Key Components of OR Governance

Several key components should be included in your OR governance framework:

• Risk appetite. Clearly define your organization's tolerance for risk in the context of OR. This will help you prioritize risks and allocate resources effectively.
• Roles and responsibilities. Assign clear roles and responsibilities for all OR program aspects, from risk identification to incident response.
• Policies and procedures. Develop clear policies and procedures for key OR activities, such as risk management, change management, and incident response.
• Communication plan. Establish a plan for communicating OR information to all stakeholders, including senior management, employees, and regulators.
• Monitoring and reporting. Regularly monitor the effectiveness of your OR program and report on its performance to senior management.

Building Effective OR Governance

Building effective OR governance is an ongoing process. Here are a few tips to get you started:

• Start small and build gradually. Don't try to boil the ocean. Focus on key areas, such as risk management or incident response, and gradually build your governance framework.
• Leverage existing structures. Look for opportunities to leverage existing governance structures for BCM or CM. This can save time and resources and build on familiar ground.
• Seek input from stakeholders. Involve key stakeholders in the development of your OR governance framework. This will help ensure it is aligned with the organisation's needs and supported by all leadership levels.
• Communicate effectively. Keep everyone informed about your OR program and the role of governance. This will help build buy-in and ensure everyone is working towards the same goals.

Conclusion

Operational resilience is not just about having a plan; it's about having the proper governance structure to ensure your plan is effective.

By building a solid foundation of OR governance, you can create a more resilient organization that is prepared to weather any storm.

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

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