Operational resilience and Organisational resilience are two concepts that are often discussed in business and risk management circles. While related, they refer to different aspects of an organization's ability to withstand and recover from disruptions.
Operational resilience is the ability to detect, prevent, respond to, learn, and/or recover from disruptions in operations that could impact the delivery of critical business services or products.
Organisational resilience refers to an organisation's ability to adapt and recover from significant changes in the internal or external environment.
Differences between Operational and Organisational Resilience
| Operational Resilience | Organisational Resilience |
| Definition | |
| focuses on the ability of an organization to continue providing critical services and operations during and after a disruption | is a broader concept that encompasses the ability of an organization to adapt and thrive in the face of change, uncertainty, and disruption. |
| Scope | |
| focuses on specific services and systems within an organization. It involves identifying critical services and systems, assessing their vulnerabilities, and developing strategies to maintain or restore them. | requires a more holistic approach that involves building a resilient culture, investing in innovation and collaboration, and developing strategic plans to adapt to changing circumstances. |
| Risk Management | |
| is closely tied to risk management. Companies must identify potential risks to their critical services and functions and implement measures to mitigate them. | Involves a more comprehensive approach to risk management, including identifying and addressing risks related to strategy, governance, and culture. |
| Response | |
| requires organisations to activate their contingency plans and implement measures to ensure continuity | requires organisations to adapt to the changing environment and implement new strategies to address emerging risks and opportunities. |
|
Training |
|
| focuses on specific contingency plans and procedures, while organizational resilience training may include leadership development, change management, and strategic planning. | need to train their employees on how to respond to disruptions and build their resilience skills |
| Recovery | |
|
requires companies to restore critical services and functions as quickly as possible. |
requires companies to learn from the experience and change their strategies, processes, and culture. |
| Monitoring | |
| may include testing contingency plans and assessing the effectiveness of risk mitigation measures. | may include measuring the company's ability to adapt to change and identifying opportunities for innovation. |
| Benefits | |
| can help an organization maintain its reputation and customer loyalty by ensuring critical business services and systems remain functional during a disruption. | can help an organization stay competitive and innovative in the long term by adapting to changing market conditions and customer needs. |
Similarities between Operational and Organisational Resilience
| Stakeholder engagement |
| Companies need to engage with their stakeholders to build resilience. Operational resilience requires companies to work with their suppliers, partners, and regulators to ensure continuity. |
| Investment |
| Building resilience requires investment in resources, technology, and people. Companies must allocate resources to ensure they have robust contingency plans, strong risk management systems, and a culture of resilience. They also need to invest in innovation and adaptability to stay ahead of emerging risks and opportunities. |
| Leadership |
|
Both operational and organizational resilience require strong leadership. |
Conclusion
While operational and organizational resilience is related, they have different focuses, scopes, and approaches.
Operational resilience focuses on maintaining critical services and systems during a disruption. In contrast, organizational resilience encompasses the organization's ability to adapt and thrive in the face of change and uncertainty.
While operational resilience is essential to organisational resilience, building a resilient culture, investing in innovation and collaboration, and developing strategic plans are critical for long-term success.
Learn more about Blended Learning OR-300 [OR-3] and OR-5000 [OR-5]
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