Global business confidence in long-term resilience falls

Confidence among business leaders in organisational resilience has fallen for the first time since 2017, according to figures from the BSI, which, it says suggests that businesses are struggling to adapt to new technology amid political and economic uncertainty.

The third annual Organisational Resilience Index report, which surveys 800 senior leaders across the globe, found that while the majority of organisations report stronger financial performance in the last 12 months, the UK and Ireland – together with Japan – lag behind other markets. Around 23% of businesses in Japan and 14% in the UK and Ireland report a worse financial performance than five years ago. That is at least double the proportion of any other market.

Chief executive at BSI, Howard Kerr said: “While we have seen a changing emphasis in Organisational Resilience in the past, this year reveals a decline in organisations’ ability to adapt to change.

“In order to survive and prosper, business leaders must be aware of issues on the horizon and remain vigilant in ensuring that they – along with their teams – are focused on strategic priorities. In balancing short-term business results with long-term resilience, businesses can use this year’s uncertainty as a springboard to future success.”

The report identifies a shift in the skills required of business leaders, with financial management no longer rated as the most important skill. The top five skills were found to be:

1. Staff engagement and recruitment
2. Clear direction
3. Business performance
4. Leadership skills
5. Use of technology

Of the 16 elements that make up organisational resilience for this report, BSI found that the most and least important are (+/- numbers denote annual move in rank):

Highest impact elements

1. Adaptive capacity (+10)
2. Leadership (=)
3. Alignment (+10)
4. Horizon scanning (+10)
5. Vision and purpose (+2)
6. Innovation (+6)
7. Resource management (+2)
8. Awareness and training (-3)
9. Culture (+1)
10. Financial management (-9)
11. Suppliers management (+2)
12. Reputational risk (-6)
13. Information and knowledge management (-6)
14. Governance and accountability (-10)
15. Community engagement (+1)
16. Business Continuity (-8)

Highest performing elements

1. Financial management (=)
2. Vision and purpose (+1)
3. Business continuity (+11)
4. Information and knowledge management (+3)
5. Leadership (+3)
6. Suppliers management (=)
7. Governance and accountability (-5)
8. Reputational risk (-4)
9. Awareness and training (-4)
10. Resource management (=)
11. Innovation (+1)
12. Culture (+2)
13. Adaptive capacity (+2)
14. Community engagement (+2)
15. Alignment (-6)
16. Horizon scanning (-4)

    Share Story:

Recent Stories

Your people and the pandemic: Are you doing enough?
Employee health, well-being and security have always been a vital part of risk management, and as organisations seek ways to ensure a smooth, successful and sustainable return to operations amid the evolving environment, careful consideration has to be given to all these areas, and quickly. Published August 2020

Responding to COVID-19: A safe and secure return to work
Learn more from the experts that worked on the recovery of the Diamond Princess. Published July 2020