Embracing Unpredictability with an Agile Resiliency Plan

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This is part three of a five-part series, The Importance of Risk Management for Financial Institutionsaimed at managing risk in the financial industry. Download the guide or follow the links to read all five parts.

Part One: Understanding Operational Resilience in the Financial Sector

Part Two: Strategies for Robust Risk Management

This is Part Three: Embracing Unpredictability with an Agile Resiliency Plan

Part Four: Case Study on How a Top Financial Institution Handles Operational Resilience

Part Five: Future Perspectives for Staying Resilient in an Ever-Changing Financial Landscape

In the ever-changing and unpredictable financial landscape, financial institutions must embrace unpredictability and adopt agile, resilient planning. The reality is that disruptions will happen, whether a cyber-attack, a natural disaster, or a sudden regulatory change. Rather than trying to prevent these disruptions altogether, institutions must focus on being prepared to adapt and respond effectively when they occur. What’s needed is a plan framework.

Speed matters.
Agile resilient planning involves the creation of a culture and framework that allows financial institutions to quickly identify and assess vulnerabilities, respond to disruptions, and recover swiftly. This approach acknowledges that vulnerabilities are inevitable and that the key to success lies in being agile and resilient in facing challenges.

Always on.
Continuously monitor and review risk management strategies for a way to embrace unpredictability. This means regularly updating risk assessments, reviewing response plans, and incorporating lessons learned from previous disruptions. When you stay vigilant and adaptive, institutions can constantly improve their operational resilience and be better prepared for future disruptions.

Change the culture.
Another essential aspect of agile resilient planning is to foster a culture of risk awareness throughout the organization. All employees should be educated and trained on risk management practices and be encouraged to report any potential risks or vulnerabilities. When you empower employees to contribute to risk management efforts actively, financial institutions can create a more resilient and prepared workforce.

Develop and test.
Additionally, financial institutions must develop and test response plans for different disruptions. These plans should outline the necessary steps during a disruption, including communication protocols, alternative work arrangements, and contingency plans. Regular tests for these response plans through tabletop exercises and simulations are crucial to ensure their effectiveness and identify any areas for improvement.

In conclusion, embracing unpredictability with agile, resilient planning is crucial for financial institutions to thrive and succeed in the ever-changing economic landscape. Continuously monitor and review risk management strategies, foster a culture of risk awareness, and develop and test response plans so institutions can enhance their operational resilience and be better prepared to handle disruptions.

In a world where uncertainties are the new normal, agile, resilient planning is the key to long-term success and survival.

Read part four or download the guide.


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Timothy Eades

Chief Executive Officer