Scenario testing is an invaluable tool for organisations to gauge their preparedness in the face of unforeseen disruptions. Over the years, organisations have carried out scenario testing across several interrelated disciplines such as operational risk, cyber, business continuity (BC), disaster recovery (DR) and more recently, operational resilience. Operational resilience regulations have increased the focus and the amount of scenario testing, as this is the primary method for organisations to:
While all organisations acknowledge the benefits of a robust scenario testing programme, we have observed through our extensive operational resilience work within financial services and insurance, that many firms have yet to overcome the four common challenges that hinder efficient and effective scenario testing.
In some cases, we have noticed that organisations that have successfully planned and executed scenario tests have yet to apply the required level of rigour and post-testing focus needed to ensure:
By adopting the following strategies, organisations can move past these common challenges and shift their focus - from the identification and assessment of vulnerability to taking action to enhance resilience.
If implemented correctly, these strategies can help firms execute efficient and cost-effective scenario testing that breaks down silos, enables them to identify tangible enhancements to improve resilience, and adequately prepares them to respond and recover from operational disruptions without causing intolerable harm.
We continue to support firms in enhancing approaches, and unlocking efficiencies and collaboration, through integrated scenario testing, so they continue to build resilience.
For more information on how we can help you improve your resilience posture, please contact Justin Elks, Keegan Gwendu or your usual Crowe contact.News and Insights