In risk management, what is the primary goal of operational resilience?

Prepare for the CPFO Risk Assessment Exam. Study with flashcards and multiple choice questions, all with detailed hints and explanations. Ensure exam success by understanding key concepts and principles!

The primary goal of operational resilience is to ensure the organization's sustainability under stress. This concept involves the ability of an organization to anticipate, respond to, and recover from unexpected disruptions or adverse events while continuing to deliver critical operations. It encompasses a range of strategies and practices designed to make an organization more adaptable and robust, allowing it to withstand various challenges, whether they are caused by natural disasters, cyber threats, or other operational shocks.

Operational resilience is not about eliminating all risks; rather, it acknowledges that some risks cannot be avoided and focuses on efficiently managing them to minimize their impact. It's also more comprehensive than simply adhering to regulatory compliance, as operational resilience involves proactive measures, culture, and continuous improvement. Providing comprehensive training for employees supports the broader objective of resilience but is not the sole aim. Therefore, ensuring sustainability under stress effectively summarizes the essence of operational resilience.

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