Reimagined Operational Resilience
The next step in reimagining operational resilience is to synthesize the outcomes of each of the above individual phases to provide better insights in terms of qualification, development and evaluation.
Download the Framework
Qualify
Assessing the business landscape and quantifying risk exposures lead to qualification. For example,
- What is the business’ risk tolerance?
- What are the qualified risks or issues that a business should look at from a probability and severity standpoint?
This will inform businesses on how they should direct their resources as they progress towards treating these risks.
Develop
The insights from quantification should provide more clarity on the financing strategy. For example,
- What can/cannot be transferred?
- What balance sheet risk can the business retain?
Technological innovation often requires developing new solutions to mitigate new risks, leading us to the final stage in the management of the risk.
Evaluate
As companies finance their risk mitigation strategies and re-assess their program in line with dynamic market changes, metrics to measure the success of this framework need to be created. For example,
- Where is the deployed capital being best utilized?
- Is there an objective measurement supported by data and analytics that can substantiate if the business is more operationally resilient than it was last year, and if the capital being deployed is indeed reducing the total cost of risk effectively?
This is the first article in a series as the framework can be applied in many ways. Case studies will be provided using this framework across various risks that businesses in the technology, media and communications industry are facing like ESG, Human Capital and Cyber. As new TMC related risks emerge, such as Artificial Intelligence, this framework can be used by businesses to guide them on how to manage risks from the deployment of new technologies.
Why Aon?
To help manage this risk framework, TMC businesses can leverage Aon’s ability to effectively deliver on each phase in a holistic way. Aon has the ability to develop market leading data and analytics to support clients, utilizing valuable risk insights to better navigate an increasingly complex business environment.