Study stresses importance of the 'five Rs' of corporate resilience.
Position | INFORM - Brief article |
Businesses should observe "five Rs" in order to improve their resilience in the I face of a growing number of risks, according to a new research report.
"Roads to resilience", by Cranfield School of Management and the Association of Insurance and Risk Managers in Industry and Commerce, highlights the following factors:
* Radar - the ability to anticipate problems and see things in a different way, helping the organisation to design an early-warning system and take opportunities as they arise.
* Resources and assets. Well-diversified resources and assets give the organisation sufficient flexibility to respond to new opportunities as well as to adverse or changing circumstances.
* Relationships and networks. Information on risks flows freely throughout the organisation and up to director level. This helps to prevent the "risk blindness" that afflicts many boards.
* Rapid response - the ability to prevent an incident from escalating into a crisis, because the right people and processes are in place quickly in order to restore normality.
[ILLUSTRATION OMITTED]
* Review and adapt. An organisation learns from its experiences, including near misses...
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