For business continuity companies and public entities need to take an adaptive and proactive approach to minimise the impacts of a disruption.
But what does being adaptive mean?
The Collins dictionary states that “adaptive” means having the ability or tendency to adapt to different situations.
For example, companies and public entities need to develop highly adaptive approaches to recover as fast as possible after a disruptive incident.
An adaptive business strategy requires a business to be proactive constantly to adjust to the economic, environmental, technological and social conditions to achieve its business goals.
Today with rapid change in many areas it is difficult to anticipate new risk to business. That’s why it’s important to have an up-to-date risk strategy and business continuity management system.
Martin Reeves and Mike Deimler in the Harvard Business Review point out that in order to adapt, a company must have its antennae tuned to signals of change from the external environment, decode them, and quickly act to refine or reinvent its business model and even reshape the information landscape of its industry. They advise companies to identify and address the uncertainties, put an initiative on every risk, examine multiple alternatives and increase the clock speed.
Lloyd’s 360 Risk Insight point out that we live in an increasingly interdependent and interconnected world. This benefits industry and commerce but has also led to new risks for business. Business needs to understand these new types of cascading and systemic
risks and develop plans to prepare and respond to them. Some of the key risks they say business should consider include financial, pandemic,infrastructure, supply chain, resource and geo-political risks. There are also potential risks to business from anti-globalising trends, including the failure of trade negotiations and the impact of resurgent nationalism in some countries.
Risk management including business continuity enables companies and public entities to act quickly in the event of a business disruption, minimise the impacts and reestablish business operations for their customers and other key stakeholders.