Business Resilience v/s Business Continuity

Business resilience is often confused with Business continuity. The more accepted definition of business continuity is- It refers to the anticipation of threats, vulnerabilities,

and risks that can potentially affect normal business operations and provide a framework that entails plans to mitigate these factors and provide a way ahead towards the resumption of business operations.

So in short, Business resilience is adapting to the disruptions while Business continuity is to anticipate the disruptions and plan for them. Now, one would say that Business continuity is better than Business resilience

but you should bear in mind that one can’t predict and be ready for every situation. Hence, when you come across any unforeseen circumstances, an agile approach like Business resilience is the more effective one.

  • One should understand that in today’s VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) business environment, the unpredictable is common, and no matter how many situations you anticipate, there will still be many curveballs along the way.
  • As discussed above, an Agile approach like Business Resilience is one of the best ways to face and adapt to such circumstances and grow along with them.

Why Resilience Is Important?

How to Become a More Resilient Company

  • One thing that this pandemic has taught us is if you plan only for the predictable, you can never stand unpredictable. If you look at the market, the majority of businesses failed during the duration. However, COVID-19 also presented many companies as examples who flourished during the pandemic.
  • Now the difference between the former & latter is adapting to the current situation quickly, swiftly, and efficiently. If you want your business to be resilient, here are some ways it can be achieved.

Opportunities in adversity: Now this may sound a little preachy, this is what the major enterprises around the world have done during the pandemic to not only stay afloat but to make the most out of the situation. The idea is to not just survive the disruption but to create opportunities in adversities.

Look forward: Well, crises present an excellent opportunity for accelerating long-term transformational change. Shifting an organization’s time horizons outward is therefore one of the key roles for leaders.

Measure beyond the “performance”: If you want to be a resilient business, stop evaluating your business’ health by Value Extracted and measure it by flexibility, adaptation, and other components of resilience. A simple method is to measure either benefits or capabilities.

Put “Diversity” above: Resilience depends on the ability to see situations as not only they are but what they could be, and this requires a fresh perspective. Resilient businesses prize cognitive diversity i.e. appreciate the value of variation and divergence.

  • Business, in stable times, can be thought of as performance maximization with a given business model in a given context. However, Resilience is based on the fact- how do the relationships between a business’ components or between a business and its context change under stress? It requires systematic thinking and systematic solutions that are highly dependent on collaboration among employees, customers, and other stakeholders

Take a collaborative, systems view

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