{"id":20927,"date":"2023-01-09T21:35:34","date_gmt":"2023-01-09T21:35:34","guid":{"rendered":"https:\/\/www.riskandresiliencehub.com\/?p=20927"},"modified":"2023-01-18T01:38:15","modified_gmt":"2023-01-18T01:38:15","slug":"5-questions-for-understanding-the-fundamentals-of-business-resiliency","status":"publish","type":"post","link":"https:\/\/www.riskandresiliencehub.com\/5-questions-for-understanding-the-fundamentals-of-business-resiliency\/","title":{"rendered":"5 Questions for Understanding the Fundamentals of Business Resiliency"},"content":{"rendered":"

With an average lifespan of 100-300 years, live oak trees fit the definition of resilience for their ability to \u201cabsorb and adapt in a changing environment.\u201d<\/h2>\n

One of my most treasured possessions on my property in northern Florida is a beautiful live oak tree.\u00a0 Although live oaks can cause allergies in some people when they begin budding new leaves in the spring, residents and visitors alike treasure these trees for their sheer majesty and the shade they provide.\u00a0 \u00a0\u00a0In times past, their\u00a0hardy wood\u00a0<\/span>was used for a variety of purposes. The\u00a0USS Constitution\u2019s\u00a0<\/em>hull for example was made from the live oak tree, and after surviving repeated bombardments during the War of 1812, the ship earned the nickname \u201cOld Ironsides.\u201d<\/p>\n

Question #1: What is business resiliency?<\/h1>\n

While I don\u2019t know the exact age of the legacy oak in my yard, it has undoubtedly seen its share of hurricanes, strong thunderstorms, freezes, heat waves, droughts and more.\u00a0 Through all of that, it still stands tall\u2026<\/p>\n

This same principle of resiliency can be transferred to a company as well.<\/p>\n

Risk thought leaders all agree that risk management is about more than avoiding failure. Even standards like COSO acknowledge that risk management should fundamentally be about helping the company succeed \u2013 to ensure goals are met. Many of these same thought leaders emphatically argue that clinging to the old \u201cpreventing failure\u201d mindset will eventually lead the organization into obscurity.<\/p>\n

Many of our posts discuss this from a short- and medium-term perspective \u2013 at most 5 years into the future, but\u2026<\/p>\n

Question #2: What about the future? Why is long-term business resiliency so important?<\/h1>\n

If the last 30 years are any clue, the next 30 years are going to look completely different than today.<\/p>\n

Let\u2019s go back to our beloved oak tree for a moment\u2026<\/p>\n

Like every living thing, this tree lives in an \u201cecosystem\u201d that consists of a variety of conditions that can impact how big it gets and how long it ultimately lives. With the right combination of factors like sun, rain\/water, proximity to other trees, and more, these trees can be incredibly resilient, with a few even living to be 1000 years old!<\/p>\n

Elements within a business\u2019 ecosystem can include:<\/p>\n