1. Change has happened. Change is constant.
Change is inevitable… Are you ready?
Enterprise Resilience
What is different today is the
necessity to take greater risk in a
fast-changing and unpredictable
environment – and acquire the
ability to spot and act on emerging
opportunities before competitors.
About 60% of CEOs believe they
have more opportunities today than
three years ago. An equal
percentage see more threats today.
30% of CEOs see both more threats
and more opportunities. Only 9%
see both threats and opportunities
declining
What is resilience
Enterprise Resilience is an
organisation's capacity to
anticipate and react to change not
only to survive, but to evolve. With
stronger resilience your
organisation will be better
positioned to capitalise on change
and crisis with the confidence to
take necessary risks. You will be
able to right-size your investments,
make investments in risk
management more effective,
and turn change to your advantage.
To navigate through turbulent times, organisations need to
develop a new set of capacities to anticipate and react to
change, not only to survive, but also to evolve.
Change is everywhere, in
every market.
Megatrends are washing over the
global economy – from
demographic change to rapid
urbanization, from shifts in
economic power to climate change
and technological breakthroughs –
together driving an extraordinary
economic dynamism. The result is
an uncharted ocean of change.
Some companies fail to navigate
and that leads others to find new
worlds of opportunity.
The average age of an S&P 500
company was 90 years in the
1930s, 61 years in 1958 and down
to 18 years in 2012. Think about
it: that means 75% of the companies
in the index will be replaced by
2027. That also means opportunity:
375 companies will earn their way
into the S&P 500 by 2027.
Changes do not have to be
megatrends. For example, fine
jewelry buyers traditionally have
been men, in developed markets.
Now, women are increasingly
buying jewels for themselves. That
could mean different approaches to
retail will be more effective in the
future. Will established retailers,
including current S&P 500 luxury
brands, be resilient enough to
evolve with their in-store and online
experiences? Or will they fall into
crisis as department stores expand
their offerings and technology
companies step into the mix?
The truth is that resilience in the
face of change has always been
valuable.
Understanding
your exposure to
events that could
disrupt your ability
and license to
operate, and
planning your
response, is
critical.
Basic features resilient of a
organisation
The ability to anticipate and react to
change is found in six distinctive
traits of enterprise resilience.
The first three traits represent
mostly internal capabilities, the
organization's ability to respond to
change: Coherence, or able to
make mutually beneficial decisions,
Adaptive Capacity, or able to
reorganize for change, and Agility,
or able to make and implement
decisions at required speed. These
traits are vital in response to a crisis
as well as how a company is able to
make the most of change.
The second set of traits represent
the organization's relationships
with its customers, partners and
other stakeholders. Relevance, or
consistently delivering on
stakeholder needs, Reliability, or
consistently delivering to expected
quality, on time, and Trust, or
knowing how to create investment-
worthy rewarding relationships.
20121930
12Years
90Years

2. risks =
opportunities
Contacts
How does resilience create value?
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Wikash Bansi
Enterprise Resilience lead
M: +31(0) 623150560
E: Wikash.Bansi@nl.pwc.com
Protecting what’s important
We always know what’s important, from
customers and people to assets and
processes. We protect them efficiently but
we know bad things can happen to good
companies and we’re ready to manage
them.
Avoiding major remediation
Major change, total transformation and
even minor remediation costs time and
money, and means we’ve been less good
than we could be. We avoid remediation
by investing in being one step ahead.
Building trust
Our stakeholders trust us; our customers
rely on us; people like working with us.
They know they can count on us; they
bring us opportunities and they forgive us
because we always work hard to
consistently honour them.
Prepared for uncertainly
We understand our organization and
likely futures. We acknowledge we cannot
predict everything, and must create
optimal conditions to identify and
respond to change.
Consistently creating advantage
We use our resilience to create and exploit
opportunity. We understand how our
everyday decisions and activities, as well
as our strategies and processes, manage
risk and opportunity.
Exploiting weak signals
We know there are weak signals that
something is going right or wrong, and
that they can get lost in the noise. So we
know where to look for our resilience
signals – positive and negative – and
address them before impact.
Benefits of enterprise resilience
Being more resilient has wider benefits to spotting, responding and recovering from disruptions. Enterprise resilience can help:
• Focus on strategic objectives in the context of a changing
environment
• Ensure risks are being managed in a collaborative way rather
than multiple times in isolated silos.
• Balance agility against the need for redundancy to protect the
business and remove unnecessary investment in other areas.
• Support an organization in delivering better and more
informed responses to opportunities and threats by having
available a more complete picture of risks and their potential
impact.
• Identify and address the root causes of problems including
system and process failures, staff morale and low levels of
customer satisfaction.
Visible outcomes of resilience
Adaptive Capacity
Able to reorganize to meet
change
Agility
Able to make and implement
decisions at required speed
Relevance
Consistently delivering
stakeholder needs
Reliability
Consistently delivering
expected quality on time
Coherence
Able to make joined-up
mutually supportive decisions
Trust
Investment-worthy rewarding
relationships
Jan Driessen
Partner Internal Audit Services
M: +31(0) 651291530
E: Jan.Driessen@nl.pwc.com