Corporate Resilience

Risks are present everywhere. A risk is a probability of an event that could occur sometime in the near future which could change the status quo of the organisation to either benefit, or more often than not, result in disastrous outcomes. Risks can be inherently present by nature, be created from an explosive mix of different circumstances coming together, or be induced by man’s own actions.

In these days, corporate resources and energies are limited. Executives spend much time and effort to meet with organisational and personal objectives. Hence, there is increasing tendencies to take short-cuts and to cut corners do admittedly appear tempting. But these inevitably add to the risk exposure.

We see significant changes taking place. More and new risk situations have emerged or are emerging. We can either take cognizance and deal with squarely with them or we put ourselves at their mercy. From one decade ago, we have seen shocking and sometimes cataclysmic events unfolding one by one concerning major and international corporations. The sub-prime problem had, and still has a real potential of switching off the global commercial grid. Whether it is terrorism, effects of global warming, contagious diseases, business managers find their already stressful jobs added challenge.

No wonder, regulators attempt to tighten operating rules to protect investors from suffering serious hurt by ignorant or unscrupulous managements. Corporate governance rules are instituted regarding internal controls, risk management and business continuity management.

However originated, risks should never be ignored! In fact, no sane person would intentionally desire to ignore risks. Still we read and hear of accidents and catastrophes which with hindsight should not have occurred. The problem is that organisations often do not generally deal tactically with risks!

The fact is this: it is possible to take the action now to render our environment as free as possible from impacts of risks and to prepare business continuity plan…thereby building corporate resilience.