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What does operational resilience focus on in risk management?

Only reducing risks

Creating adaptable organizations

Operational resilience in risk management emphasizes the ability of organizations to adapt and respond effectively to disruptions while maintaining critical operations. This focus on adaptability ensures that organizations can withstand challenges, whether they stem from external factors such as natural disasters or internal changes like shifting market conditions.

Creating adaptable organizations means implementing practices and strategies that strengthen an organization's capacity to pivot quickly in response to unforeseen events. This could include training employees to handle various roles, investing in technologies that support remote work, developing flexible supply chains, and building strong contingency plans. By prioritizing adaptability, organizations can better manage risks and recover from incidents more swiftly, ultimately safeguarding their long-term viability and success.

In contrast, the other choices do not encapsulate the essence of operational resilience. Reducing risks alone does not prepare an organization for unexpected events, whereas restricting operational capacities and limiting employee participation in decision-making could hinder an organization's responsiveness and ability to adapt effectively. Thus, the focus of operational resilience is best captured by the notion of creating adaptable organizations.

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Restricting operational capacities

Limiting employee participation in decision-making

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