Why Business Resiliency Planning is no Longer Optional
By Joe Anderson, CPCU, ARM AFSB, CBRA
Principal & Fractional Chief Risk Officer
In an era defined by rapid change and unexpected disruptions: pandemics, cyberattacks, supply chain breakdowns, economic downturns. Business resiliency is no longer a competitive advantage. It’s a necessity.
Companies that can adapt quickly and recover from disruptions are the ones that not only survive but often emerge stronger. That’s where business resiliency planning comes into play. It’s not just about bouncing back, it's about building the proactive planning and agility to thrive no matter what comes next.
What Is Business Resiliency Planning?
At its core, business resiliency planning goes beyond identifying potential threats to an organization and establishing protocols to mitigate their impact. It includes:
Risk Assessment and Scenario Planning
Operational Flexibility
Workforce Continuity
Technology and Cybersecurity Preparedness
Supply Chain Diversification
Crisis Communication Plans
Opportunity Cost/Benefit Assessments (these help you recover smarter and strategically take advantage of the opportunities crisis brings.
The goal? To ensure that when adversity strikes, your business can maintain critical operations, protect your brand reputation, minimize financial loss, and thrive when your competitors are still trying to cope.
Why It Matters Now More Than Ever
1. The Threat Landscape Is Evolving
Whether it’s geopolitical instability, natural disasters, or ransomware attacks, threats are becoming more frequent and more complex. According to PwC’s 2024 Global Crisis and Resilience Survey, 89% of executives said resilience is one of their most important strategic priorities, but only 25% feel fully prepared.
2. Customers and Stakeholders Expect Stability
Your clients, partners, and investors need to know they can rely on you, even in a crisis. A solid resiliency plan enhances trust, boosts your brand image, and can even become a selling point in competitive bids or client negotiations.
3. Downtime Is Costly
A single hour of downtime can cost thousands (or even millions) depending on your industry. Resiliency planning helps reduce downtime by enabling faster response and recovery times, saving your business from significant financial and reputational damage.
The Key Components of a Resiliency Plan
1. Identify Critical Functions and Dependencies
Map out which business functions are mission-critical and understand the dependencies that support them: people, processes, technologies, and third-party vendors.
2. Conduct Risk Assessments and Impact Analyses
What are the most likely and most severe risks your business faces? What would the impact be if they occurred? From natural disasters to data breaches, quantify the risks and prioritize response planning accordingly.
3. Build Flexible and Redundant Systems
Invest in cloud infrastructure, remote work capabilities, and backup suppliers. Redundancy isn't wasteful... it’s strategic.
4. Develop and Document Response Plans
Clearly outline who does what during a disruption. Include step-by-step procedures, key contacts, and escalation paths. Ensure everyone knows their role and has access to the plan when it matters most.
5. Test, Train, and Evolve
A resiliency plan is only as good as its execution. Run simulations, conduct tabletop exercises, and revisit your plan regularly to reflect changes in your business, technology, and threat landscape.
The Bottom Line
Business resiliency planning is about investing in confidence: confidence that your organization can weather any storm, respond decisively, and continue delivering value to your customers no matter the circumstances. And that confidence is built by skilled professionals teaming up to attack downside risk.
At Fortify Risk Management, we believe resilience isn’t just a safeguard. It’s a strategic asset. Whether you're just starting to build your resiliency framework or refining an existing plan, we’re here to help you navigate uncertainty with clarity and confidence.
Let’s plan for strength, not just survival.