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Illustration by iStock; Security Management

How Important is Resilience?

“Organizations are contending with an environment in permacrisis—constant movement, continuous disruption—as they attempt to undertake broader business transformations to adapt and address each challenge, emerge stronger from unplanned events, and thrive,” according to PricewaterhouseCoopers’s Global Crisis and Resilience Survey 2024: The Resilience Revolution is Here.

From epidemics and pandemics to disrupted supply chains to increasing natural disasters, organizations are encountering increased disruptions. And to meet this rising sea of interruptions, organizations have had to consider how to become more resilient than ever before.

The survey’s findings, which are based on responses from more than 1,812 business leaders, indicate that disruptions trended upwards in 2023, and that upswing is likely to continue.

  • 96 percent of organizations have experienced a disruption within the past two years. In comparison, in 2019 only 69 percent of organizations said they experienced a disruption within the last five years.

  • 91 percent said they experienced at least one disruption other than the COVID-19 pandemic in 2023.

  • 76 percent of survey participants said their most serious disruption resulted in a medium-to-high impact on operations—disrupting critical business processes and services.

The three most concerning disruptions for organizations (besides the pandemic) for the next two years were cyberattacks, supply chain disruptions, and employee retention and recruitment.

Survey data also revealed that although leaders understand “resilience as a strategic imperative” and are confident in their ability to deal with a disruption, only one-third of respondents said they have sufficient support for resilience. This leaves them exposed to a number of threats, including:

  • Inadequate risk management
  • Lack of cultural resilience
  • Inadequate technology and resources
  • Increased costs and decreased competitiveness

While some organizations may have response plans, more needs to be done well before disaster strikes.

“It is no longer sufficient for organizations to be in silos as they address today’s complex and interconnected risks,” the survey said.

Nearly two-thirds of organizations have moved toward an integrated resilience program—but only one in five is fully integrated.

The sectors with the most-integrated resilience programs include:

  • Technology, media, and telecommunications (28 percent)
  • Energy, utilities, and resources (24 percent)
  • Health industries (24 percent)
  • Financial services (22 percent)
  • Government and public services (19 percent)

 

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