“Change what you can, manage what you can’t.” – Raymond McCauley
If truth be told, about 30 percent of the business start-up fails in the first year and approximately 50 percent fails inside the first five years. Now, there will be many advising you on how to run a business? How risky is it? How do you need to have nerves of steel? And the list could go on and on. But none of it would matter, none. Not even your business acumen, skill sets, and even knowledge if you are not ready or capable of picking up other necessary traits along the course quickly. And one such trait is business resilience.
What is Business Resilience?
Business resilience is the ability to adapt to any circumstances to continue running your business operations and delivering products consistently. It allows you to see through the worst phases of your business with minimal harm done to it irrespective of any situations your business has encountered over time.
Why is Business Resilience Important?
Simply said, business resiliency is important as it not only protects your business but also ensures that it does not lead to an unfortunate ending. When you are practicing business resilience daily, you and everyone involved in your business are filled with positivity and hope to work their way through any worse circumstances. Experts suggest that business resilience should be taught to everyone who aspires to have his own business in the future.
While covering the whole course on business management is not possible here. However, I can tell you about the four key disciplines that form the four pillars of business resilience.
Discipline #1: Risk Management
As the word suggests, risk management is about assessing all the possible risks your business or organization could potentially find itself in. Here, the organization needs to identify, assess, and prioritize any risk that could affect their business. Once the involved risk factors have been figured, the organization is required to develop plans to either minimize or eliminate any negative effect associated with that identified risk.
It must be known that there are a variety of risk management strategies you or your company could practice to keep your business far away from any type of risk. If we analyze a bit, there are 6 potential risk types involved in a business. They are operational, organizational, strategic, financial technology, and legality.
Although most of these risks are addressed at an enterprise, it is advisable to keep the details about strategic risk hidden. This is because revealing would put your company in a very comfortable situation.
Disciple #2: Incident Management
Wikipedia would define incident management as the activity of a company or organization taken to identifying, analyzing, and taking corrective measures to prevent a recurrence of a similar situation in the future. Generally, most business companies or organizations would appoint an Incident Management Team (IMT) or an Incident Response Team (IRT) to deal with such incidents that could occur again.
A lot of times, these teams are set up dramatically when any such event is taking place. At times, the incident management team takes over the whole organization until the whole problem has been resolved.
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Discipline #3: Crisis Management
Even though it may seem like both incident management and crisis management are the same, they are not. There is a subtle but very much important difference between the two.
While incident management is about taking care of any incident to prevent its occurrence again, crisis management is about dealing with similar issues but on a much larger scale.
A company or organization that has been in crisis could mean trouble for that organization. Crisis management could also be explained by three common elements that play a part in it. They are a threat to an organization, the element of surprise, and the shortage of time to make crucial decisions to preserve the state of the organization as it was.
Discipline #4: Business Continuity Management
While crisis management is about protecting the safety of a person and property, business continuity (BC) management is about the processing of the focus on planning and management of the company or the organization.
It is a proactive measure undertaken based on calculated potential risks that could have a highly damaging impact on the company or the organization. By practicing Business continuity management, you could ensure your company can continue business activities under any circumstance.
So, this was all about business resilience and the four keys/pillars that play a significant role in ensuring your business remains active even in tough situations.
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