Operational resilience has become a top issue for governments and businesses everywhere. As a result, the Business Resilience Council created the Operational Resilience Framework (ORF) after nearly a year of discussion, along with NIST and ISO.
Regulators increasingly link operational resilience and operational risk. However, industry experts suggest functional strength to the entire GRC strategy.
Operational resilience encompasses more than damage mitigation, risk management, and business continuity. Enterprises must incorporate operational stability into their DNA to survive today’s highly complex landscape.
With a solid plan incorporating the newest tools and technology, risks that arise must be identified and controlled. It is a positive sign that such a refined approach is being incorporated into GRC strategies to ensure operational resilience.
Statista said the average cost per data breach worldwide in 2022 was 4.35 million US dollars.
Operational incidents can have short-term or long-term financial impacts on an entire organization.
Research done by McKinsey and Company needs a mention here.
According to the study of more than 350 operational risk occurrences at financial institutions in the US and Europe, the initial drops in total returns to shareholders were relatively constant or consistent with the $23 billion in fines that were ultimately assessed.
The overall organization strategy must guide investment decisions for operational resilience initiatives. In other words, it requires a comprehensive approach.
Besides, the kind of operational resilience that today’s enterprises require will revolve around a total change from long-standing approaches. Yet, the issue for companies is that the volume of data being gathered and evaluated is enormous, given how quickly the GRC landscape is growing.
Relying on traditional methods may lead to errors as the data collected is enormous and diverse in a GRC landscape that is constantly altering.