Resilience emerges as key priority for global business leaders
Herndon, VA – November 28, 2018 - Business leaders have taken significant steps to shore up the resilience of their companies, but still face significant risks around technology, governance and skills shortages. This is according to BSI’s 2018 Organizational Resilience Index report launched in the United States today at Bloomberg’s The Year Ahead event. The index is based on more than 800 interviews with senior executives across the globe.
The annual survey assesses organizations against 16 key elements, derived from international standards of best practice relevant to resilience.
Despite an overall perceived improvement in resilience, business leaders are wary of what the future holds. Technological challenges emerged this year as the most significant source of risk, identified by more than a fifth (21%) of senior leaders. Governance concerns and skills shortages were similarly recognized as key challenges – more than six in ten considered one of these three factors a top risk for their organization. Governance and Accountability was also the element that rose highest up the importance rankings this year.
“By focusing on the relationship among three key areas — Operational Resilience, Information Resilience and Supply Chain Resilience, organizations can prepare themselves for an uncertain future,” said Timothy Wren, Commercial Director Americas at BSI. “We are very pleased to participate in Bloomberg’s The Year Ahead Summit as it showcases how forward-thinking by companies can prepare their organizations to ensure prosperity and profitability over a longer term.”
As businesses become more aware of the importance of resilience to long term success, they have increased their focus on governance and internal training, which rose five places on the scale of importance, with a significant reduction in the attention paid to product and service innovation. Additionally, the issue of supplier management has dramatically risen in importance in the last 12 months, rising 10 places on the scale. This indicates that businesses have sought to firm up their supply chains following a sharp increase in disruption in recent years. The research revealed a disconnect between the boardroom and the shop floor. Members of senior management teams rank their own leadership performance higher than junior managers – a trend that is particularly pronounced in organizations that are over 50 years old.
“Faced with these challenges, companies must continue to innovate and balance risk against opportunity. This year’s Index sees many firms shying away from innovation and technological disruption. Those that succeed over the long-term recognize that failing to adapt means missing out on opportunity,” Howard Kerr, Chief Executive at BSI, commented. “It is encouraging that in this year’s report we see both higher levels of resilience and an increasing number of resilience specialists within organizations. Leaders around the world have a responsibility to embed a state of preparedness across their organization, and I’m pleased to see how governance and training has risen up the corporate agenda.”
The 2018 Organizational Resilience Index report is available for download on the BSI Group website. For more information about Organizational Resilience please visit www.bsigroup.com/organizational-resilience-us.
BSI (British Standards Institution) equips businesses with the necessary solutions to turn standards of best practice into habits of excellence. From assessment, certification and training to software solutions, advisory services and supply chain intelligence, BSI provides the full solution to facilitate business improvement and help clients drive performance, manage risk and grow sustainably. Through the passion and expertise of our people, BSI embeds excellence in organizations across the globe to improve business performance and resilience. BSI’s influence spans across multiple sectors with particular focus on Aerospace, Automotive, Built Environment, Food, Retail, Healthcare and IT.
About the BSI Organizational Resilience Index
BSI’s annual Organizational Resilience Index is the only comprehensive global study on the perceived performance and importance across 16 elements of Organizational Resilience based on relevant international standards of best practice. The 2018 survey field work was conducted in the second half of 2018. Feedback was collected through online and telephone interviews with senior executives in 808 businesses across Australia, China, India, Japan, UK and Ireland, and the USA.
To learn more, please visit: www.bsigroup.com/en-us/.