Operational Resilience key to success finds PwC report
Business leaders face an unprecedented level of disruption and uncertainty in today’s rapidly changing environment. From geopolitical instability to climate crises, cyber threats and faltering supply chains – a multitude of external macro forces are converging on the market. Organisations are also facing heightened levels of internal complexity and challenges – all intensifying the frequency and scale of disruption. They are operating in an environment in constant movement and continuous disruption as they attempt to undertake broader business transformations to adapt and address each challenge, emerge stronger from unplanned events, and thrive.
PwC Middle East Crisis and Resilience Survey 2023 shows resilience is now one of the most vital strategic priorities. It also reflects the views of business leaders from across the Middle East and is focused on understanding today’s threats and how organisations direct their resources, efforts and investments to become more resilient.
Data from nearly 100 respondents throughout the Middle East provides insights into how regional business leaders are preparing for and responding to this new world. And what has emerged from the voices of regional and global business leaders is that a resilience revolution is here.
Nayaz Mohammed, Partner, Digital Trust, PwC Middle East, pointed out that Financial Services, Telecom, Government and Public Services, Oil & gas and Utilities are the sectors taking the strongest steps towards embracing resilience by design. As a result, designing a resilient organization has become a strategic priority. Top firms are implementing an operational resilience strategy and employing technology to gain a comprehensive perspective of their risk and resilience landscape. Mohammed attributes this to these sectors being regulated.
Organisations are revolutionising the way they build resilience by focusing on three key areas - integration, operational resilience and leadership.
According to the report, an integrated resilience programme is essential – and businesses that aren’t developing a strategy to do this are already falling behind. The Middle East is forging ahead with 33 percent of respondents stating that their organisations have a fully integrated approach compared to the global average of 21 percent.
Leading organisations are adopting an operational resilience (OpRes) approach and leveraging technology to enable a panoramic view of their risk and resilience landscape. PwC data also shows that those who have moved to an integrated resilience programme are significantly further ahead in many of the core elements of OpRes.
Thriving in a state of constant disruption requires a senior leader, executive sponsorship and upskilled teams. Today, 93 percent of organisations in the Middle East with a resilience programme in place have established a C-level sponsor. However only 11 percent have named a Chief Resilience Officer.
PwC’s Mohammed added, “Financial Services and Telecom sector have shown the most resilience largely because they are regulated and the regulators have recognised the importance of resilience in businesses and have issued regulations in this regard.”
“A well-developed corporate governance system can significantly improve business resilience and provide operational transparency,” Mohammed shared. “In today’s world business resilience is an increasingly crucial organizational attribute that defines success in an interconnected, ever-changing environment. It's the key to long-term success, allowing executive teams to adapt swiftly and effectively to internal and external demands and pressures. This is more than just risk management and business continuity: a business resilient organization is adaptable, nimble, sturdy, and competitive. It can harness new and dynamic opportunities while also quickly rebounding from unexpected and disastrous challenges.”