---
title: [Plan] [OR] [P1] [S5] Building a Strong Foundation with Effective Governance
description: [OR] [P1-S4] Building a Strong Foundation with Effective Governance
image: https://blog.bcm-institute.org/hubfs/Operational%20Resilience%20OR/Operational%20Resilience%20Morepost/OR%20Blog%20New%20Morepost/OR_Blog_Confirming%20Risk%20Appetite.png
---
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###### Operational Resilience Planning Methodology: "Your Guide To" Series
# \[Plan\] \[OR\] \[P1\] \[S5\] Building a Strong Foundation with Effective Governance
[](https://cta-redirect.hubspot.com/cta/redirect/3893111/a7a71475-5014-4391-aeb4-d9469434c909)Why does Operational Resilience and Governance Matter?
Governance is more than just policies and procedures; it's the framework that establishes clear roles, responsibilities, and accountabilities for managing operational risks and ensuring business continuity.
Effectively managing an operational resilience (OR) program requires a solid foundation. Governance – that often overlooked element – is the very bedrock of a successful OR program.
[![\[OR\] \[Banner\] \[Guide\] \[P1\] \[S5\] Develop and Embed Governance](https://no-cache.hubspot.com/cta/default/3893111/14b10c1a-843d-41f5-8273-87125e7d2222.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/14b10c1a-843d-41f5-8273-87125e7d2222)
[Moh Heng Goh](https://blog.bcm-institute.org/operational-resilience/author/moh-heng-goh) Jan 28, 2024
###### Operational Resilience Certified Planner-Specialist-Expert
### [](https://cta-redirect.hubspot.com/cta/redirect/3893111/a7a71475-5014-4391-aeb4-d9469434c909)Building a Strong Foundation with Effective Governance
Operational resilience (OR) is quickly becoming a top priority for organisations 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.
[](https://cta-redirect.hubspot.com/cta/redirect/3893111/ef753c88-e05b-448e-9140-319c0d873990)However, simply implementing an OR framework is not enough. To ensure the effectiveness of your OR efforts, you need a strong governance foundation.
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 participants in the Operational Resilience Expert Implementer course.
Appointed OR team leaders often underestimate the importance of investigating OR governance.
#### What is OR Governance?
[](https://cta-redirect.hubspot.com/cta/redirect/3893111/bc513cca-b33c-4a90-9ffa-5ba56095f7dd)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.
#### [![\[OR\] \[Banner\] \[Guide\] \[P1\] \[S5\] Develop and Embed Governance](https://no-cache.hubspot.com/cta/default/3893111/14b10c1a-843d-41f5-8273-87125e7d2222.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/14b10c1a-843d-41f5-8273-87125e7d2222)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 aspects of the OR program.
- **Reduced risk.** Strong governance helps to identify and mitigate potential disruptions, reducing the likelihood of their occurrence and minimising their impact.
- **Increased efficiency**: Defined processes and procedures streamline OR activities, resulting in greater efficiency and cost savings.
- **Improved stakeholder confidence**. Effective governance demonstrates to stakeholders that your organisation 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:
- **[](https://cta-redirect.hubspot.com/cta/redirect/3893111/1b620a23-ced7-40ac-a175-b9d412cf8f3a)Risk appetite**. Clearly define your organisation's risk tolerance in the context of OR. This will help you prioritise risks and allocate resources effectively.
- **Roles and responsibilities**. Assign clear roles and responsibilities across all aspects of the OR program, 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.
**[](https://cta-redirect.hubspot.com/cta/redirect/3893111/e67b5d11-2d44-44aa-b501-fe4c282815e5)**
- **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 that it is aligned with the organisation's needs and supported by all levels of leadership.
- **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.
#### [![\[Banner\] \[Summing\] \[OR\] \[E2\] \[C7\] Developing and Embedding Governance](https://no-cache.hubspot.com/cta/default/3893111/a568a7fb-b099-4703-a948-af6e7fa18f75.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/a568a7fb-b099-4703-a948-af6e7fa18f75)
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 for OR governance, you can create a more resilient organisation prepared to weather any storm.
#### "Plan" Phase of the OR Planning Methodology
| **Assess Capability and Maturity** | **Analyse Gap** | **Develop Strategy and Roadmap** | **Confirm Risk Appetite** | **Develop and Embed Governance** | |
| --- | --- | --- | --- | --- | --- |
| [](https://cta-redirect.hubspot.com/cta/redirect/3893111/a5acb961-f2ec-4567-b636-874e365c892e) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/48ad32d4-5765-4202-bcfd-4842c25cb2e2) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/891c6c74-ae2a-4b88-8389-9bd88e49e284) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/75653343-ef0d-4799-83cc-96914a06ca14) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/7cf54cf9-f96e-45a7-aa4c-0ae5c3c9a24a) | |
#### More Information About Blended Learning OR-5000 \[BL-OR-5\] or OR-300 \[BL-OR-3\]
Contact our course consultant colleagues to learn more about our blended learning program and about the next course's schedule. They are the BL-OR-3 Blended Learning OR-300 Operational Resilience Implementer and the BL-OR-5 Blended Learning OR-5000 Operational Resilience Expert Implementer.
| [](https://cta-redirect.hubspot.com/cta/redirect/3893111/3530eccb-515d-401e-afc2-3469e26d7fbf) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/fdd4fa9c-ed69-40c1-925f-4eb6a1c5c255) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/77a34b84-0a6d-44f8-b8d6-6ab04cdf5edd) |
| --- | --- | --- |
| [](https://cta-redirect.hubspot.com/cta/redirect/3893111/6e5c0cda-39b9-4bbd-b3d4-4cf46a790b14) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/a68a08aa-36d3-4216-9551-202c9fde06ea) | [![ \[BL-OR\] \[3-4-5\] View Schedule](https://no-cache.hubspot.com/cta/default/3893111/d0d733a1-16c0-4b68-a26d-adbfd4fc6069.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/d0d733a1-16c0-4b68-a26d-adbfd4fc6069) |
| [![\[BL-OR\] \[3\] FAQ OR-300](https://no-cache.hubspot.com/cta/default/3893111/f20c71b4-f5e8-4aa5-8056-c374ca33a091.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/f20c71b4-f5e8-4aa5-8056-c374ca33a091) | If you have any questions, click to contact us.[![Email to Sales Team \[BCM Institute\]](https://no-cache.hubspot.com/cta/default/3893111/3c53daeb-2836-4843-b0e0-645baee2ab9e.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/3c53daeb-2836-4843-b0e0-645baee2ab9e) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/7f2718a4-ea80-4f84-a319-dc2d4df37a46) |
| [](https://cta-redirect.hubspot.com/cta/redirect/3893111/32739296-1993-4215-8dbf-5b3e1caa8f40) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/f2bd8eb1-32d2-4732-9267-ea53223cf58f) | [](https://cta-redirect.hubspot.com/cta/redirect/3893111/084e620a-46c5-419a-82ed-6a681d15c0b6) |
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