What is the difference between operational Resilience and Business Continuity Management (BCM)?

Currently, Financial institution and organization face challenges to keep their business operating continuously to meet customer satisfaction, which is changed dynamically. Add insult to injury, several operational risk incidents – for instance COVID pandemic, technology failure, cyber-attacks, and natural disasters – have highlighted the importance of upgrading organization IT infrastructure & enhancing company’s operational resilience.?

Not only, organizations have realized the importance of operational resilience, but also financial authorities emphasize the significance of such concept to avoid potential systematic and reputational risks in their countries’ economies. Accordingly, regulators are developing different standards, instruction, and regulation to allow banks and different financial institution to adapt operational resilience in their agendas. ??

Indeed, Business Continuity Management (BCM) had played an important role previously to fulfill regulatory requirements. However, BCM mindset is kind of old-fashioned, because of the changes the world has witnessed lately. Because of severe competition among banks and financial institutions, dynamic changes in customer wants and needs and fulfilling regulatory requirements and reporting have forced organization to develop their capabilities to exceed the expectations.

Therefore, an essential question must be asked, what is operational resilience? What is BCM? & What is the difference between operational resilience and Business Continuity Management (BCM)? Let’s find out.

Therefore, operational resilience is an essential concept, which should be adapted by organization and banks. Still, How would they strive operational resilience?

Establish foundation:

• To understand organization capabilities.
• Defining the accountability (i.e. Board of Directors and Senior management) and create op. resilience model are essential.
• It is critical to define bank’s critical services.

Make things clear to Board of director:

• Define the target resilience maturity and objectives.
• Identify initial metrics to encompass the progress of reaching operational resilience to board of directors.

Focus on a critical service (pilot phase):

• Define key dependencies and their risks.
• Define the tolerances and evaluate resilience through scenarios.
• Identify lessons learned.?

Expand the approach:

• Expand the approach to other services.?