Independent Quality Review: The Final Checkpoint for Operational Resilience
Implementing operational resilience is a marathon, not a sprint. Once the initial planning and execution are complete, one crucial step remains: conducting an independent quality review (IQR).
This final checkpoint is a rigorous assessment, ensuring your operational resilience (OR) program's effectiveness and robustness.
This blog is a pre-reading for participants attending the Operational Resilience Expert Implementer course. Although this is the last stage of the last phase, "Sustain", it is often not executed because it tends to require external engagement and requests for proposals for external assistance.
Why IQR Matters?
Think of IQR as your external validation audit. It objectively evaluates your operational resilience approach, revealing potential gaps and strengthening your overall posture.
Beyond immediate benefits, a thorough IQR:
- Enhances Trust and Confidence. Stakeholders gain increased assurance in your resilience measures, boosting internal and external buy-in.
- Identifies Blind Spots. Independent reviewers can uncover hidden vulnerabilities or areas for improvement that internal teams might miss.
- Drives Continuous Improvement. IQR findings provide actionable insights for refining your existing framework and adapting to evolving risks.
Who Conducts the Review?
Traditionally, internal audit is crucial in IQR, leveraging its risk assessment and control evaluation expertise. However, organisations seeking extra objectivity can consider the following:
- External Auditors. A fresh perspective can offer new insights and strengthen the review's credibility.
- Regulators. In some cases, regulators may be involved in the IQR process, ensuring compliance with specific mandates.
Navigating the Lines of Defense
Determining who performs and oversees the IQR depends on your organisational structure and risk profile. Two key models to consider:
- Traditional Three Lines of Defence: Business units manage risks, monitoring functions provide oversight, and internal audit conducts independent reviews.
- Four Lines of Defence. Adds an external line for enhanced scrutiny, potentially involving regulators or external auditors.
Key Elements of a Strong IQR
No matter the chosen model, your IQR should encompass the following:
- Comprehensive Scope. Review all critical operations, controls, and risk scenarios.
- Objective Methodology. They are employing well-defined criteria and consistent evaluation methods.
- Structured Reporting. Communicating findings, recommendations, and action plans.
Beyond the Final Lap
Remember, operational resilience is not a static state. Effective program management is crucial for:
- Maintaining Momentum. Regularly review and update your framework based on IQR findings and evolving risks.
- Senior Management Engagement. Enlisting leadership to champion resilience efforts and allocate necessary resources.
- Continuous Improvement. Cultivating a culture of learning and adaptation to ensure your program remains fit for purpose.
An independent quality review is not merely the final hurdle in operational resilience implementation but a catalyst for continual refinement and enhanced preparedness.
By embracing IQR and its valuable insights, you can transform your program from a well-laid plan to a dynamic shield against disruption.
More Information About Blended Learning OR-5000 [BL-OR-5] or OR-300 [BL-OR-3]
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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