The importance of a diversified scenario testing approach
Through engaging LinkedIn posts, we re-emphasised the importance of diversifying operational resilience scenario testing beyond tabletop exercises to build confidence.
Risk Consulting’s analogies highlight the parallels between operational resilience approaches and real-world situations.
Teetotal, golf and scenario testing
Keegan Gwendu’s analogy helped illustrate the benefits of diversifying operational resilience testing. Just as golfers practice on the driving range (tabletop testing) and refine skills in the practice bunker (simulations), before tackling bunkers on a course (real-life crises), firms must employ a range of testing methods. This approach ensures adaptability, effective crisis response, and overall readiness. Whether you are aiming to achieve the perfect swing or safeguarding your business, remember that success lies in diverse preparation.
Rock stars and operational resilience
Justin Elks shares his early ambition of becoming the guitarist in a rock band, now lived through his son, Elliot. His analogy of soundchecks and live simulation testing illustrated the importance of being pragmatic and focusing your testing towards most severe but plausible scenarios to build confidence to address other incidents (e.g., playing the hardest song during soundchecks). Justin further commented on the importance of identifying vulnerabilities and keeping the doors to substitutability open by having spare leads, patch cables, strings, and guitars. Even if sometimes, a flexible mindset throughout a disruption may equip the guitarist to identify when to deviate from the plan and let the confidence built over time and tests play its role (e.g., when Elliot's pedal stopped working, and he had to get a similar tone in a different way)
Scenario testing and Hurricane Irma
Carlota Garcia’s post took readers to the story of an executive having to evacuate a hotel following a disruption we can only expect to become increasingly common with climate change: a hurricane was heading towards the idyllic holiday destination. Then, against the initial forecasts, the hurricane changed paths towards the backup site as guests were being evacuated there; exposing the need for the executive to confidently respond to any gaps in existing plans. Through this story, Carlota sought to illustrate the importance of the confidence that originates from a diversified scenario testing programme (including simulation exercises). When it comes to these crises, every minute wasted could ultimately result in intolerable harm to their guests.
Cycling and operational resilience – what’s the link?
Matt Rowe’s post was based on cycling. You can have all the natural talent in the world, but without experience of international competition, an Olympic gold medal winning performance is unlikely. This analogy helped illustrate the benefits of diversifying operational resilience testing. Just as cyclists race as youth (tabletop testing), refine skills through physiological power testing in a lab or training labs (simulations) and tackle guest rides to compete internationally (live testing) before performing in an unprecedented environment such as the Olympics (real-life crises), firms must employ a range of testing methods. This approach ensures adaptability, effective crisis response, and overall readiness. How is your firm approaching scenario testing – looking at old results and hypothesising, or increasing the sophistication of your testing in pursuit of Olympic level assurance?
For more information, please contact Justin Elks, Keegan Gwendu or your usual Crowe contact.
