DIANA THOMAS-MORRIS
Storms, whether literal or figurative are an inevitable part of life. But isn’t it better to face storms in a prepared manner rather than haplessly?
To demonstrate the importance of building resilience we take the story of the three little pigs. Yes! I know that we are thinking business, however, some key life lessons are often found in these stories.
So, let us envisage the three little pigs. The first little pig which built with straw is likened to a business that treats resiliency planning as a haphazard part of operations. Therefore, when faced with a negative external stimulus, such a business will inexorably face certain failure.
Likewise, the second little pig which built his house with sticks is likened to a business that has a framework in place for resilience, however this is not integrated into the strategic planning of the business. Therefore, during adverse external forces, such a business could be at risk of collapse.
The third little pig however, which built his house with bricks, is likened to a business that incorporates and integrates resiliency planning as a key component of its operations and strategic planning. This business is able to withstand the pressures caused by external pressures and is also capable of leveraging its plans to not only guarantee survival but to thrive and flourish.
The art of building a resilient business is in laying a strong foundation built on the fundamentals of effective risk management.
To illustrate this important concept, the mnemonic impartec will be used:
• Identify: The first step in building resilience is to identifying the forces that could impact the business, the industry in which it operates and any observed trends. This could be done by employing strategic analysis tools such as a Swot analysis, Porter’s five forces, Gap, Pestel and other appropriate analyses. These analyses should be in-depth, and embody a critical assessment of the position of the business in relation to the risks identified.
• Measure: The next step is to measure the risks. This should encompass both quantitative and qualitative assessments of the probable impact, which the perceived risks or threats could have on the business.
• Plan: It is often said, “He who fails to plan, plans to fail.” And it’s absolutely true! You cannot enter a storm unprepared and expect to be ok. Once the risks are identified and measured, then it is time to plan. This is where the five w’s and an h will come in. These questions could include: What will be the trigger event? When is this likely to happen? Who will respond? Where will this be effected? Why did this occur? How will it affect the business?
These questions will enable the business to implement an effective plan that will encompass many possible variables. Additionally, in planning, the business must decide whether it will accept or transfer the risks identified.
• Assess: Once the plan is created, it must be assessed for its fluidity. The business must critically assess the plan to determine if it is
