Resilience emerges as key priority for global business leaders in BSI Index

Business leaders have taken significant steps to shore up the resilience of their companies, but still face significant risks around technology, governance and skills shortages. This is according to the 2018 Organisational Resilience Index published today by BSI. The Index is based on more than 800 interviews with senior executives across the globe.

The annual survey assesses organisations against 16 key elements derived from international standards of Best Practice relevant to resilience.

Despite an overall perceived improvement in resilience, business leaders are wary of what the future holds. Technological challenges emerged this year as the most significant source of risk, identified by more than a fifth (ie 21%) of senior leaders. Governance concerns and skills shortages were similarly recognised as key challenges. More than six in ten considered one of these three factors a top risk for their organisation. Governance and accountability was also the element that rose highest up the importance rankings this year.

As businesses become more aware of the importance of resilience to long-term success, so they’ve increased their focus on governance and internal training, which rose five places on the scale of importance, with a significant reduction in the attention paid to product and service innovation. China is the notable exception to this concern, with senior leaders perceiving innovation as the most important factor in preserving long-term resilience.

Howard Kerr: CEO at the BSI

Howard Kerr: CEO at the BSI

The performance of supplier management has dramatically improved in the last 12 months, rising ten places on the scale. This indicates that businesses have sought to firm up their supply chains following a sharp increase in disruption in recent years.

The research also revealed a ‘disconnect’ between the Boardroom and the ‘shop floor’. Members of senior management teams rank their own leadership performance higher than junior managers. This is a trend that’s particularly pronounced in those organisations that are over 50 years old.

Of the 16 elements that make up Organisational Resilience, the report found that the most and least important are as follows (+/- numbers denote annual move in rank):

Most important elements

(1) Financial Management (+1)
(2) Leadership (+1)
(3) Vision and Purpose (+1)
(4) Governance and Accountability (+5)
(5) Awareness and Training (+5)
(6) Reputational Risk (-5)
(7) Information and Knowledge Management (-2)
(8) Business Continuity (=)
(9) Resource Management (-2)
(10) Culture (+3)
(11) Adaptive Capacity (+1)
(12) Innovation (-6)
(13) Supplier Management (-2)
(14) Alignment (+1)
(15) Horizon Scanning (+1)
(16) Community Engagement (-2)

Highest performing elements

(1) Financial Management (=)
(2) Governance and Accountability (+3)
(3) Vision and Purpose (+1)
(4) Reputational Risk (+5)
(5) Awareness and Training (+7)
(6) Supplier Management (+10)
(7) Information and Knowledge Management (+6)
(8) Leadership (-5)
(9) Alignment (-7)
(10) Resource Management (=)
(11) Business Continuity (-4)
(12) Horizon Scanning (+2)
(13) Innovation (+2)
(14) Culture (-6)
(15) Adaptive Capacity (-4)
(16) Community Engagement (-10)

Howard Kerr, CEO at the BSI, commented: “Faced with these challenges, companies must continue to innovate and balance risk against opportunity. This year’s Index sees many firms shying away from innovation and technological disruption. Those that succeed over the long-term recognise that failing to adapt means missing out on opportunity.”

Kerr added: “It’s encouraging that, in this year’s report, we see both higher levels of resilience and an increasing number of resilience specialists within organisations. Leaders around the world have a responsibility to embed a state of preparedness across their organisation, and I’m very pleased to see how governance and training have both risen up the corporate agenda.”

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

Related Posts