Resilience should be a strategic objective for every organisation. The core processes that deliver services to customers need to be identified and effective control measures implemented. The supply chain is a vital component in this process, and we can look at effects of its disruption. A current example of this is coronavirus in China's densely populated manufacturing and transport hub. This ?black swan? event is having a global ripple effect on supply chains, from technology to car manufacturing and clothing production. The outbreak is an ever-evolving situation and nobody quite knows the lasting effects it will have for the global economy. The World Economic Forum provides regular updates on the situation and with the current trend, it is expected that most global companies will see some sort of negative outcome as a result of the outbreak. We will continue to see the effects of coronavirus for several months to come as companies cut output and suffer losses and transport, tourism and investment fall into decline.  

Impact tolerances are a critical element in building resilience to ensure continuity of an organisation's business services. These should be set from within the organisation and consider the harm to consumers and markets, how to respond to a disruption, the financial stability and safety, as well as the soundness of the organisation. These should reflect the risk appetite of the business and be aligned with clear metrics. Mapping is a key technique used to identify vulnerabilities and map the resources (people, processes, technology and facilities) involved in the business service. The tools that can be used need to be proportionate to the size of the organisation and can range from bow tie diagrams to software.

Scenario stress testing is the best way to test business continuity arrangements, identify new risks, set future impact tolerances and improve on existing plans. Organisations need to be able to act when they can't remain within the tolerance for an important business service. Various testing techniques can be implemented, such as table-top exercises, simulations and live action events. The entire chain of activities should be considered when testing important business services and all roles and responsibilities assigned and understood within the organisation.

Focus on operational resilience is more significant than ever, with regulations expected to tighten for the foreseeable future. Following the release of the consultation paper CP29/19, KRisk have developed the Risk and Resilience Academy with UK Finance. The Academy will explore the principles involved in managing risk and resilience and provide a comprehensive and relevant learning experience, encouraging delegates to identify areas of weakness within their organisation and address these. Resilience is built on principles and implemented through systematic processes and cultural change. It is not a simple compliance check-box exercise'the academy aims to develop innovative thinking leading to an improved approach to risk and resilience management.

The finance sector is like an ecosystem, and only as strong as its weakest link. The Academy will enable delegates to develop frameworks, practices and behaviours that instil operational resilience discipline across the firm. The four sessions will provide a safe and interactive environment to learn about international best practice and share experiences with peers through a ?learning by doing? approach. The academy ultimately enables organisations to deliver on their commitments in the ever-changing environment of operational resilience. You can learn more about the academy, here.