Strategic allies: Understanding the nexus of business continuity and operational resilience

Abstract

Operational resilience and business continuity are closely related, but each embraces different aspects of organisational stability. Business continuity refers to the processes and procedures an organisation puts in place to ensure that critical business functions continue during and after a disruption. It focuses on the ability to maintain or quickly resume essential operations often through preplanned strategies and recovery plans. Operational resilience is a broader concept, encompassing an organisation’s ability to adapt and respond to various types of disruption, not only through recovery but also by anticipating, preparing for and mitigating potential impacts. It includes elements of business continuity but also involves a proactive approach to managing risks, building flexibility into operations and maintaining service during disruptions. In summary, while business continuity is a key component of operational resilience, operational resilience itself is a more comprehensive framework that includes preparedness, response, recovery, and adaptation to changes and disruptions. This paper analyses the working of the two functions, highlighting their synergies and differences, and urges risk managers and business owners to realise their combined need for effective contingency planning in an organisation. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.