The Shortcomings of Independent Institutional Resilience
Diego Otegui Ph.D
Social Impact | Corporate Social Responsibility | Business Development | Regional Manager | Client-Facing Skills | Relationship Builder | Washington DC, Virginia | Joyful Dad
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The extraordinary challenges that impact our world today are not isolated events. Instead, they are interconnected and complex consequences of societal evolution—reactions to our collective actions as humans. These challenges span across various domains, such as climate change, economic instability, technological advancements, and geopolitical tensions, all of which are deeply interwoven. For example, climate change affects environmental conditions and has profound economic and social implications, influencing migration patterns, public health, and resource availability.
In this intricate web of cause and effect, every action we take triggers a series of reactions, often leading to new and unforeseen risks. This dynamic nature of risk and response is particularly relevant for corporate executives. Take changing building codes. While these codes are designed to mitigate risks and ensure safety, their implementation can generate significant ripple effects across various industries. Construction companies must adapt to new regulations, which may require investing in new materials or technologies. Real estate developers might face increased costs and project delays. Insurance companies may need to reassess risk models and adjust premiums accordingly.
These industry-wide adjustments can lead to unintended consequences and new levels of risk that are challenging to forecast. For instance, a new building code requiring more resilient materials might initially reduce the risk of structural failure. However, if the supply of these materials is limited, it could create bottlenecks, increase costs, and delay projects, potentially impacting economic stability and growth. Additionally, industries that rely on older infrastructure might be at a competitive disadvantage, leading to market disruptions.
In this context, corporate executives are encouraged to embrace a mindset beyond traditional risk management. They are expected to foster a culture of continuous learning and innovation, staying ahead of trends and being flexible enough for the inevitable shifts of any regulatory or societal change. I am sorry to say that pushing for more institutional resiliency will never be enough. Risk is a by-product of independent action. The more resilient we become without regard for the resiliency of others is a terrible formula, for it increases the overall level of risk instead of reducing it. True disaster resilience (understood as the opposite of disaster risk) is a function of societal resilience and not independent institutional resilience.
No strategy will ever be enough if not pursued within a purposeful, well-planned, and well-executed approach primarily driven by community well-being. For instance, consider the response to natural disasters such as hurricanes or earthquakes. An independent institutional resilience strategy might focus solely on ensuring that a single corporation's infrastructure can withstand such events. While this is important, it is insufficient if the surrounding community is left vulnerable. If local hospitals, emergency services, and housing are not equally resilient, the broader impact of the disaster will severely affect the corporation's operations, employees, and supply chains.
In contrast, a socially resilient approach would involve the corporation working with local governments, NGOs, and other businesses to create comprehensive emergency plans. This might include investing in local infrastructure improvements, supporting community disaster education programs, and ensuring all citizens can access safe shelters and medical care. By doing so, the corporation benefits by providing a stable and supportive environment.
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Also, consider economic resilience. A company might implement independent measures such as diversifying suppliers or building financial reserves. However, if the local economy is fragile, economic shocks can still lead to reduced consumer spending, increased crime rates, and social unrest, all of which negatively impact the company. A socially resilient strategy would see the company investing in local economic development initiatives, such as supporting small businesses, providing job training programs, and advocating for economic stability policies.?
These examples illustrate that true resilience comes from a collective, community-focused approach. By fostering social resilience, we create environments where businesses and communities can thrive, even in unexpected challenges.
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Assistant Professor Department of Health in Disasters & Emergencies
7 个月Resilience is a new concept that is mostly used against unknown issues and uncertainties. There are several definitions for the word resilience, some of which are as follows: The capacity to go back and use economic and physical resources to help recover from damage caused by hazards. The capacity to manage, or maintain specific functions and structures, when hazards occur. The ability of societies to maintain social structures against external threats. The ability of the social system to respond and recover from risks The ability of social units, organizations and communities to reduce risks, including the effects of risk and perform recovery activities in ways that reduce social failures and also reduce the effects of future risks. A stable network of physical systems and human communities, with the ability to manage incidents and crises Resilient communities are defined as communities that are structurally organized to reduce the effects of hazards. The ability of a system, community or society at risk to resist, absorb, adapt and recover from the effects of a hazard in a timely and efficient manner. Community's ability not only to deal with disasters, but also to recover from hazards
Assistant Professor Department of Health in Disasters & Emergencies
7 个月According to the process of changes that cities are experiencing in different dimensions (economic, social, physical, etc.), for their durability and sustainability, it is necessary to implement the urban resilience approach, the theory of resilience provides insights and perspectives towards the system. complex sociology-ecological issues and their sustainable management, especially with regard to climate change. In general, it can be said that the increase in economic, social and spatial vulnerability in cities, the excessive erosion of natural resources, the increase in the number of ecological incidents and the increase in environmental destruction factors have made it possible to say with certainty that now is the right time to address It is about resilience in urban planning.
Client Success Lead | I Partner with Clients to streamline operations and enhance profitability by implementing strategic technological solutions and automation.
8 个月That sounds like a fantastic edition! Community-driven strategies are key for resilience.