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Article | Managing Risk

From fragile to agile: Building organisational resilience

By Frederick Gentile | September 11, 2025

Resilience is no longer a buzzword - it’s a business imperative. How can your organisation shift from reactive recovery to proactive resilience?
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Understanding organisational resilience

Resilience is a multifaceted concept that has been defined and applied in various ways across different fields. In psychology, it refers to the ability to adapt and recover from adversity, trauma or significant stress. In contrast, engineering and ecological resilience focus on the ability of systems to maintain their function and structure when faced with disturbances.

Organisational resilience can be defined as the ability to anticipate, prepare for, and respond to disruptions to survive and prosper.  It's about being prepared for the unexpected and having the agility to respond effectively. Organisations that embed resilience into their strategy are better positioned to maintain continuity, protect reputation and drive long-term success.

Why resilience gives you a competitive advantage

Organisational resilience isn’t just about weathering crises; it's about leveraging those challenges as opportunities for growth and improvement. A resilient organisation combines stress tolerance with flexibility, enabling it to maintain operations, serve customers and meet obligations even during significant disruptions, such as economic downturns, supply chain issues or natural disasters.

Research from Cranfield University[1] highlights four key capabilities: anticipating threats and opportunities early, preparing for change to reduce impact, responding quickly, effectively and adapting to stay ahead. These principles are also embedded in ISO 22361[2], which offers a framework for building resilience into your operations.

What might be holding your business back?

Despite its strategic value, some organisations hesitate to invest heavily in resilience due to several challenges. Common barriers can include high upfront costs for tech, training and restructuring; competing priorities that push resilience down the list; and the tension between efficiency and redundancy. Resilience can often require spare capacity, which can seem inefficient. And because success often means avoiding visible failure, measuring the return on investment (ROI) can be challenging.

The long-term value of resilience for your organisation

Investing in resilience pays off in ways that matter to your business beyond simply avoiding a crisis. A resilient organisation can:

  • Ensure business continuity: Maintain operations during disruptions, minimising revenue loss
  • Build competitive advantage: Adapt quickly to changing market conditions and emerging technologies
  • Enhance reputation and customer trust: Handle crises effectively and deliver reliable service, fostering customer loyalty
  • Boost employee morale and engagement: Create a supportive environment through strong leadership, leading to higher productivity and retention
  • Improve financial stability: Weather economic fluctuations through strategies like cash reserves and diversified supply chains avoiding business interruptions and loss of funds.

Where to start: Questions to ask to build organisational resilience

A good place to start is by asking questions within your organisation across various aspects of your operations: What’s our biggest vulnerability in the next 12 months? What if our main supplier fails - do we have a plan B? Can we operate for three to six months without revenue? Are employees empowered to act during a crisis? Are our systems secure and backed up?

By asking and answering these questions, your organisation can identify areas for improvement and develop targeted strategies to enhance its resilience.

How we help you build resilience

To help you better understand resilience, we support organisations in developing strategies to anticipate, prepare for, and respond to disruptions. Here are the key strategies to become more resilient:

  1. Develop a robust risk management approach: Implement fully integrated risk registers and a clear emerging risk identification process to stay ahead of potential threats
  2. Build a resilient culture: Foster an environment that encourages agility, innovation, and learning from mistakes. This includes workforce planning, employee-centric strategies and effective communication
  3. Invest in your people: Provide training on new technologies, crisis management and decision-making to empower your team
  4. Diversify: Identify single points of failure in your supply chain and diversify your suppliers to minimise business interruption and the cost associated with this
  5. Create a continuity plan: Develop a clear, actionable plan for business continuity during and after disruptions. Regular drills and simulations ensure the plan's effectiveness to potentially avoid financial loss, reputation damage, downtime and compliance failures
  6. Stress test scenarios: Test your organisation's resilience by simulating various crisis scenarios to understand how to cope and recover allowing your organisation to develop and adapt to mitigate those risks.

To explore how we can help you build organisational resilience, get in touch with our specialists.

Footnotes

  1. Organizational Resilience: A summary of academic evidence, business insights and new thinking. Return to article
  2. ISO 22361:2022. Return to article

Author


Director of Risk Engagement

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