Despite countless events and incentives to change, a startling number of compani

es are still behind the business curve with regards to their risk management. In
much the same way a train travels on a set track that has been planned, surveye
d, laid and maintained for predictable routes between key locations it doesnâ t permi
t for deviation or adaptability. Given a large enough obstacle it can even be de
railed, damaging the train, goods, passengers and requiring major repairs before
service is returned. Shareholder value may be affected and the reputation of th
e company called into question. While the business demands swift and timely move
ment between locations, the business decision making process is likely to be muc
h slower than the business operation.
Enterprise resilience is a relatively new term and still foreign to most. Outdat
ed risk management structures are functional silos of threat identification, bud
gets, management and risk mitigation with higher than average potential for dupl
ication, wastage and blind spots not covered by the functional departments or ma
nagers. The people overseeing the strategy or implementing the objectives may al
so be inexperienced or lack authority to encompass all the necessary business as
pects.
To further frustrate the process is the human trait that ensures the longer one
is exposured to a situation, activity or location results in complacency or dimi
nished ability to identify emerging risks. We have seen this in action most rece
ntly with companies operating in Thailand. Despite repeated and almost obvious c
hanges in the situation across the country, but more so in the capital Bangkok,
thousands of people and hundreds of companies were taken totally unawares when p
rotesters blocked streets, business environment altered, airports closed and ope
n violence on the streets.
The situation was largely predictable and measured preparedness and planning wou
ld have negated any major disruption or continuity issues. Thanks to the legacy
emotion of Thailand being a â great placeâ companies almost refuse to accept the new sta
us and many have dismissed the past events as â isolatedâ and still remain vulnerable to
what is the new order until resolution is evident. A similar situation is emergi
ng in Malaysia at present. With a large foreign investment, multinational headqu
arters, expatriate placements and active international travel, the affects of th
e changing state in Malaysia will have similar impact on companies and personnel
. The signs are there; rule of law, emergency services, crime, religious fragmen
tation, social unrest, health crisis and financial division are not easily remed
ied and constitute a here-and-now threat that must be mitigated accordingly.
Enterprise resilience begins at the top. If your board, C-suite or executive lea
dership is not engaged, the process is doomed from the outset. If the identifica
tion and preparation for threats are not inclusive of the enterprise and a repre
sentative counsel, the results will be similarly weak. Modern management and com
petitive advantage lays with those that are hard-wired to the assets and issues
in parallel. To know what constitutes value, and the priority to the business al
ong with emerging and dynamic incident surveillance rounded out with a replicata
ble and efficient decision making process will ensure survival of the fittest. T
his is an even more poignant issue for those with there manufacturing, managemen
t, back office processing or supply lines in developing economies where even the
most basic of enterprise resilience strategies are specks on the horizon and no
t perceived to be an economic imperative. The vehicle is in motion, its speed in
creasing and the business may be depending on you as the designated driver. The
question is, are you asleep at the wheel?