Michael D. Moberly Intangible Asset Strategist, Risk Specialist, Trainer, and Author July 12, 2017 email@example.com ‘A business intangible asset blog where attention span really matters’.
When 80+% of most company’s value, sources of revenue, competitive advantage, and sustainability today lie in – emerge directly from intangible assets…
It’s essential to know a company’s risk threshold – tolerance for every transaction and initiative undertaken, assess and mitigate the risks, and have contingencies in place to achieve rapid and more complete recovery when disruptive risks materialize!
In my judgment, it’s important for business leadership and management teams to acknowledge, that risk (i.e., to a company’s value, sources of revenue, competitive advantage, and sustainability, etc.) is not consistently synonymous with today’s notion of ‘threats’ even though they are routinely expressed as being interchangeable. Business risks are mercurial, that is, they manifest as market change and politically induced instability, supply chain fragility, interconnectivity challenges, problems associated with infrastructure in need of repair and maintenance, changing demographics and behaviors, and, of course, climate.
Ensuring your company is resilient and agile to accommodating – incorporating these and other challenges are key to preparing for risk and uncertainty.
Achieving organizational resilience should not be construed as a necessarily complex or costly undertaking. Companies today are obliged, approaching a fiduciary level responsibility…
• to not only identify potentially (business-wide) disruptive risks.
• but also, mitigate those risks, objectively measured as substantially
elevating probability that the activity, initiative, transaction
• will achieve the desired-projected outcome.
• and, a significant disruption, should it occur, will not cascade to
adversely – irreversibly affect a company’s ability to operate.
Again, the path toward achieving organizational resiliency includes recognizing-distinguishing…
• the various and particular, types and/or sets of risk which may
• the various circumstances which cause – contribute to such risks
• objectively assess (measure) each relative to the company’s
vulnerability, the probability the risks will materialize, and their
criticality to the business operability should they materialize.
A common challenge company leadership experience in assessing business disruptive risks lies in…
• transcending the subjective (guesses, anecdotes) to the quantifiably
• effectively integrating the lesser intrusive measures to monitor,
preclude, and mitigate designated risks.
• preparing-allowing a business to effectively and rapidly respond to
and commence recovery from materialized risks, especially those which
can disrupt (adversely affect) a business’s value, revenue producing
capacity, and essential components to its supply chain.
Each organization (private, for profit, public, not-for-profit, startups, etc.) can seldom escape all risk. It’s prudent therefore to consider risk as being…
• ever and asymmetrically present.
• embedded with variables which affect how, when, where, why, and what
type of risk manifests.
In-order-to sustain a desired level of organization-wide (risk) resilience, competitiveness, and performance, organizations are obliged to have systems, practices, and procedures in place to…
• not-so-much manage, rather mitigate – suspend the most significant
o objectively reaching consensus insofar as the level, type, duration
of risk and uncertainty a company can tolerate or is willing to
o how to (cost, resource) effectively the monitoring and mitigation of
specific risk and uncertainty, and
o recognize when either measurably rises above the tolerable –
acceptable level to warrant additional interventions.
o all-the-while, meeting the organizations’ operational and financial
Given the usual resource parameters which most organizations operate, it is increasingly important that companies have (resiliency) options ‘at the ready’. This often translates as having sufficient layers-levels of resilience to monitor, mitigate, and recover from various hazards and risks a sector specific company may prudently assume it will encounter, particularly with respect to its intangible assets, which are invariably in play. Interestingly, national, professional association, and international standards will be playing an ever-increasing role in the management of operational risks organizations face, e.g., ANSI/ASIS American National Standard, Organizational Resilience: Security, Preparedness, and Continuity Management Systems— Requirements with Guidance for Use (ASIS SPC.1-2009).
One strategy for business leadership and management teams to become better acclimated to today’s aggressive and predatorial ‘go fast, go hard, go global’ transaction environment, is to periodically remind themselves that it is an irreversible economic fact, that 80+% of most company’s value, sources of revenue, future wealth creation, and sustainability today lie in – directly emerge from intangible assets. Thus, those engaged in achieving ‘organization-wide resilience’, conceptually and practically, are obligated to factor intangible assets in their resilience planning and practice.
Similarly, it’s important to recognize the principles – foundations of organization resilience are not merely superficially tweaked versions of conventional (business) ‘continuity and contingency planning’. Admittedly, the latter variously remains a common framework that many business leaders and management teams conceptually rely, irrespective of its reactive, and far less proactive inclination. Whereas, organization resilience, in principle and practice, is embedded with a singularly proactive mantra through its execution as an informed ‘management system’.
It’s surely (increasingly) self-evident, that an organizations’ ability to quickly, efficiently, and rapidly adapt to change, whether the change manifests as market forces, environmental factors, or various types-levels of risk, or a host of other potentially disruptive acts – events, that simply being more organizationally resilient is one of those good, better, best options. Of course, and again, the organizationally resilient options any company should undertake, should be durable, monitorable, responsive, and provide for comprehensive and rapid recovery. In other words, organizational resilience should no longer be dismissed nor subordinated to convention, i.e., a tweaked version of continuity – contingency planning.
In today’s predatorial, go fast, go hard, go global business (transaction) environment in which risks are numerous, asymmetric, and ‘coming at your company 24/7’, taking time to objectively examine the benefits of becoming more organizationally resilient in posture and practice can indeed, be a worthy use of time for any business leader, management team, board, and stakeholder.