In 2021, the World Economic Forum, in partnership with Deloitte Global, surveyed 2,260 private and public-sector CXOs in 21 countries to determine the proactivity of companies to invest in cultural resiliency. Companies that invested in mitigating operational interruptions saved money and accelerated overall enterprise growth.

Operational resilience is the ability of an organization, government agency, or community to withstand disruptions and maintain essential operational continuity functions without regard to any adversity and can play a critical role, ensuring that economic, social, and environmental systems are robust and adaptable to changing circumstances. Examples of key investments follow:

1. Risk management: Effective risk management practices are essential to identify, assess, and mitigate risks that can disrupt operations and growth. A robust risk management framework should be in place that incorporates emerging risks and scenarios, including climate change, cyber threats, and geopolitical instability.
2. Business continuity planning: Business continuity planning is a process of preparing for and responding to unexpected disruptions to operations. It is essential to have a comprehensive plan in place that includes backup systems, alternative supply chains, and other contingencies that can be activated in the event of a crisis.
3. Stakeholder engagement: Building strong relationships with stakeholders, including customers, employees, suppliers, and local communities, is essential for resilience. It is necessary to engage with stakeholders to identify risks, develop contingency plans, and respond to disruptions in a way that minimizes negative impacts on all parties.
4. Innovation: Innovation and technology can play a significant role in building resilience. By investing in new technologies, businesses and communities can improve their ability to adapt to changing circumstances, anticipate risks, and respond to crises.
5. Sustainability: Sustainable practices can contribute to operational resilience by reducing environmental risks and improving social and economic stability. Adopting sustainable practices can also provide opportunities for growth and innovation, such as renewable energy and sustainable agriculture.

Overall, achieving operational resilience for sustainable, inclusive growth requires a comprehensive approach that incorporates risk management, business continuity planning, stakeholder engagement, innovation, and sustainability. By focusing on these areas, organizations and communities can build the resilience they need to navigate disruptions and continue to grow in a sustainable and inclusive way.

Keep this in mind: According to the Federal Emergency Management Association, the costs of business outages can add up to a loss of between $10K and $5M per hour. Many CXOs are unwilling (and underwhelmed) by the lack of ROI in business resiliency spending…until the next pandemic, geo-political event, or significant negative natural disaster puts people, infrastructure, supply chains, and/or revenue at risk.