Simply put, risk refers to the likelihood of anything unpleasant occurring. Uncertainty regarding the impact of an activity on something that humans value, with a concentration on the undesirable result is referred to as risk. Every day, everyone is exposed to risk. Hence, a risk management approach is necessary to reduce the impact of the risk on an organisation.
RESILIENCE AND IT’S IMPORTANT
Resilience is commonly defined as the ability to recover from adversity. Resilience isn’t like a trampoline, where you bounce from one end to the other. It’s more similar to hiking without a map. Resilience risk management is essential because it offers people the strength they need to process and overcome adversity. Individuals who lack resilience are quickly overwhelmed and may resort to harmful coping mechanisms. To conquer challenges and work through difficulties, resilient people draw on their strong points and support systems.
RISK AND RESILIENCE
People are exposed to a variety of dangers and difficulties throughout their lives. . Terrorism, gun violence, natural calamities, and, of course, the COVID-19 pandemic are all common occurrences in the news. People must learn to deal with and overcome extremely difficult life circumstances. Similarly, companies and organisations all over the world are exposed to this risk, and to manage it and recover from the losses incurred as a result of the crisis, companies must develop a RISK RESILIENCE Report.
IMPORTANCE OF RISK RESILIENCE REPORT
Let’s understand the importance of RISK RESILENCE REPORT with the help of the given example. The current outbreak of pandemic had resulted in lockdowns across the globe which not only led to the stopping of operations across industries but also led to disruption in the supply chain. A very dreadful situation for every organization as nothing could be done except for waiting for the situation to get better but that’s not how the market leaders with a proper risk resilience plan act instead they started focusing on lowering their expenditure on operational activities and aggressively focused on building the digital infrastructure to organize the supply chain.
It’s human nature to dig a well only after the house catches fire i.e we look to find a solution only when adversity arises and ideally it’s not the right time to take key decisions as we are in panic mode and think of a short term quick fix to overcome the adversity. Therefore, it can be concluded that RISK RESILENCE REPORT act as a perfect guide for an organization to bounce back stronger every time you are hit by adversity.
Blog Published By: Samveg Gala, Student Risk Committee Member