The business world is always inundated with an influx of hot topics and buzzwords that float in and out of the lexicon. Within the last few years, operational resilience and corporate bouncebackability have surely topped the charts of the hot and trendy, but what do they really mean and what is the difference?
Operational resilience has been a key principle for businesses and firms worldwide within the last couple years. While there is no one set definition, operational resilience refers to an organization’s ability to “bend but not break” when it comes to inevitable disruptions. According to the Computer Security Resource Center, operational resilience is defined as “the ability of systems to resist, absorb, and recover from or adapt to an adverse occurrence during operation that may cause harm, destruction, or loss of ability to perform mission-related functions.”
It should be emphasized that operational resilience refers to any disruption within (or outside) in regards to a business, whether it’s daily delivery systems, technology or security based or third-party related. What’s more important, operational resilience is not about the disruption, but rather the response to it and the ability to continue or resume function after an issue. More and more, organizations have become increasingly aware of possible threats to their organizations and develop strategies to anticipate and respond to those threats efficiently.
Operational resilience relies on a framework that informatively anticipated specific disruptions and assesses a strategic approach to minimize the effects of those disruptions based on data.
Meanwhile, corporate bouncebackability is another term that’s been recently and increasingly hurled around within business circles, trade magazines and online articles, but what is it? And how does it differ from operational resilience?
Truthfully, they apply to the same concept and are very similar in spirit. Like operational resilience, corporate bouncebackability pertains to an organization’s preparedness for disruptions across all functions, processes and departments. Like operational resilience, it also calls for a centralized, homogeneous approach to mitigating risk.
Simply put, corporate bouncebackability applies the general concept of being able to recover from a setback in the corporate realm. At their core, operational resilience and corporate bouncebackability share the same principle, an organization’s ability to prepare for and recover from a disruption. However, operational resilience provides a clear framework of how to analyze and mitigate those disruptions.
You can think of it this way: corporate bouncebackability references the idea as a whole of a firm’s ability to “bounce back” successfully from a negative impact, where operational resilience concerns itself with a more detailed, comprehensive approach of how to identify those challenges, assess them and respond to them. Operational resilience is much more strategy and analysis based, while corporate bouncebackability refers to the general concept of resilience in business.
Both of these buzzwords have proved worthy of their buzz and firms should take note. Incorporating both concepts of operational resilience and corporate bouncebackability is a great and smart way to practice your firm’s preparedness and durability when faced with challenges.