Quarterly Resiliency Forecast-Winter 2024

Crisis-Ready Leadership: Navigating Global Risks & Building Resilience in 2025

As organizations look ahead to 2025, crisis and security experts anticipate a continuation of complex challenges, including heightened civil unrest, increasing frequency and severity of natural disasters, and the persistent rise in cybercrime. These evolving risks underscore the importance of proactive planning and robust crisis management to safeguard operations and ensure organizational resilience.

So, how can you prepare your organization for what promises to be an intense year?

The below Q&A with our President and CEO, Andrea Davis, delves into key strategies for managing risks, fostering organizational resilience, and leading confidently in the face of uncertainty. With 25 years of experience in crisis management, Andrea has guided organizations such as Disney and Walmart through hundreds of critical incidents. Drawing on her extensive expertise, she shares her recommendations on the importance of proactive planning and strategies for effective leadership during crises and offers a roadmap for success in 2025 and beyond.  

1.    What essential skills enable leaders to anticipate, prepare for, and manage crises effectively?

The most effective leaders I have worked with shared one trait that enabled them to successfully prepare for and navigate crises: adaptability. Their ability to adjust their daily approach and quickly reprioritize as new information emerges allowed them to stay ahead of challenges. Additionally, their humility in relying on subject matter experts fostered a collaborative environment that ensured swift and informed decision-making.

I witnessed this firsthand while serving as the Senior Director of Global Emergency Management for the Walmart Corporation during the COVID-19 crisis. The entire C-suite rolled up its sleeves to determine the best approach to maintaining business operations and keeping employees safe. Their leadership built a sense of unity and collaboration that empowered the entire organization to navigate the crisis effectively and exceed quarterly expectations.

2.   How do global affairs make businesses vulnerable to disruption, and how can a business adapt?

Whether you're running a multinational corporation or a local business, disruptions from geopolitical tensions, economic instability, and regulatory changes can significantly impact operations and the global supply chain. Escalating conflicts, trade restrictions, inflation and shifting regulations can disrupt production, logistics, and market dynamics. To navigate this unpredictable environment, businesses must prioritize resilience and adaptability, ensuring they are prepared to manage risks and maintain continuity in the face of evolving challenges.

To stay ahead of the impacts of global affairs, I recommend organizations implement the following 7 Action Steps.

Your 7-Step Crisis-Ready Action Plan 

Conduct Comprehensive Risk Assessments

·    Identify and analyze potential geopolitical risks, such as conflicts, trade restrictions, and diplomatic tensions.

·    Evaluate economic risks, including currency fluctuations, inflation rates, and financial market volatility.

·    Stay informed about regulatory changes and potential new legislation that could impact operations.

Develop Crisis Management, Business Continuity & Disaster Recovery Plans

·    Define your company’s duty of care to employees- how and when will employees be notified before, during and after a crisis? Will you provide financial assistance if a crisis impacts employees?

·    Create detailed crisis response plans and teams that outline specific actions to take in various disruption scenarios.

·    Conduct regular drills and simulations to ensure the company’s readiness and improve response times.

·    Detail critical functions and define recovery time objectives.

·    Understand the capabilities of your third-party vendors.

·    Have system back-ups and alternative ways of working if one goes down.

Diversify Supply Chains

·    Source materials and products from multiple suppliers across different regions to reduce dependency on any single source.

·    Establish alternative logistics and transportation routes to ensure continuity in case of disruptions.

·    Develop local supply chains where possible to minimize the impact of international disturbances.

Implement Flexible Financial Strategies

·    Maintain a strong cash flow and liquidity position to absorb economic shocks.

·    Hedge against currency risks by using financial instruments like forward contracts and options.

·    Create contingency budgets to manage unexpected costs arising from economic instability.

Enhance Regulatory Compliance

·    Monitor and anticipate changes in trade agreements, environmental regulations, and labor laws.

·    Develop internal policies and training programs to ensure compliance with new regulations.

·    Engage with industry associations and regulatory bodies to stay ahead of upcoming changes.

Leverage Technology and Innovation

·    Invest in digital transformation initiatives to improve operational efficiency and agility.

·    Use data analytics and AI to predict and respond to market changes and disruptions.

Foster Strong Stakeholder Relationships

·    Build and maintain robust relationships with key suppliers, customers, and industry partners.

·    Engage in regular communication with stakeholders to understand their needs and concerns.

·    Connect with local first responders.

·    Collaborate with other businesses and organizations to share resources and best practices during crises.

What skills are needed to lead through a crisis?

The most effective crisis leadership comes with mastering soft skills. Robust strategic foresight and decisive decision-making abilities to anticipate, plan for, and effectively respond to crises are a must. However, I would argue that effective communication, emotional intelligence, and adept stress management are equally vital.

These competencies enable leaders to maintain poise, make swift and informed decisions, and adeptly guide their teams through challenging times.

4. How can organizations best prepare their employees?

Organizations can significantly bolster their resilience by focusing on preparedness efforts now. Fostering a culture of continuous learning and innovation is crucial for emergency preparedness and resiliency. Encouraging employees to adapt and innovate enhances the organization's ability to respond swiftly and effectively to crises. This includes investing in training programs focused on emergency response skills and future challenges, promoting a mindset of adaptability and problem-solving, and incentivizing creative solutions to unforeseen issues.

Investing in employee well-being and development is also vital for building resilience. By supporting employees' physical and mental health, providing opportunities for professional growth, and fostering a supportive work environment, executives can improve morale, productivity, and retention. These factors collectively contribute to organizational stability and preparedness during emergencies and disruptions.

About TRI 

The Resiliency Initiative (TRI) is a certified Women-Owned Small Business (WOSB) and Women Business Enterprise (WBE) with Fortune 500, government, military, and non-profit leadership experience focusing on crisis and risk mitigation planning.

The TRI team has over 200 cumulative years of experience in crisis management, business continuity, and security. The team has responded to and supported the recovery efforts of some of the US’ largest disasters, from the Northridge Earthquake, 9/11, Hurricane Katrina, Super Storm Sandy, the COVID-19 pandemic, and the 2023 Maui fires.

TRI specializes in developing crisis and business continuity plans, employee and executive trainings, and engaging discussion-based, functional, and full-scale exercises. 

TRI’s mission is to create resilient communities around the world. We accomplish this by providing our expert services to businesses, non-profits, and communities. 

To request a free consultation, email info@theresiliencyinitiative.com or call +1 (424) 478-0779.