[OR] Roles and Responsibilities for Board of Directors in Operational Resilience

Roles and Responsibilities in Operational Resilience

Board of Directors

The Board of Directors is critical in overseeing and setting the strategic direction for an organisation's operational resilience program.

Their responsibilities differ from the operational teams and focus on high-level governance and oversight.

Here is a breakdown of their key roles and responsibilities.

Setting the Strategic Tone and Direction

• Approve the organization's risk tolerance and appetite for disruption related to operational risks.
• Establish clear objectives and goals for the operational resilience program, aligning it with the overall business strategy.
• Allocate adequate resources and budget to support the program's development and implementation.
• Hold senior management accountable for the effectiveness and performance of the program.

Overseeing Program Governance and Framework

• Approve the operational resilience program framework and key strategies presented by senior management.
• Ensure the program aligns with relevant industry standards, regulations, and best practices.
• Monitor the program's progress and performance against established metrics and objectives.
• Receive and review regular reports on program activities, challenges, and risks.

Championing Cultural Change and Awareness

• Promote the importance of operational resilience across all levels of the organization, including senior leadership.
• Foster a culture of risk awareness, preparedness, and continuous improvement.
• Ensure open communication and transparency regarding operational risks and potential disruptions.

Engaging with Key Stakeholders

• Communicate the organization's commitment to operational resilience to key stakeholders, including investors, regulators, and customers.
• Engage with regulatory bodies and industry peers to stay informed about evolving requirements and trends.
• Oversee the management of critical third-party relationships and their impact on overall resilience.

Crisis Response and Oversight

• Provide guidance and support to senior management during major disruptions or incidents impacting operations.
• Review the effectiveness of the response and recovery efforts, identifying lessons learned for future improvement.
• Hold senior management accountable for addressing any identified weaknesses or failures in the program.

Additional Considerations

• Stay informed about emerging threats, vulnerabilities, and potential organisational operation risks.
• Actively participate in board-level discussions and training related to operational resilience.
• Seek independent assurance and review of the program's effectiveness regularly.

Summing Up ...

By effectively fulfilling these roles and responsibilities, the Board of Directors can provide strong leadership and oversight, ensuring the organisation's operational resilience program is strategically aligned, well-resourced, and continuously improved.

This ultimately contributes to the organisation's ability to withstand disruptions, ensure business continuity, and maintain stakeholder trust.