Operational resilience involves which type of approach to risk?

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!

Operational resilience indeed centers around a proactive approach aimed at anticipating disruptions. This concept is pivotal because it recognizes that organizations must not only prepare for potential risks but also actively work to mitigate the impact of those risks before they manifest. By adopting a proactive stance, businesses can identify vulnerabilities within their operations, develop contingency plans, and implement strategies to maintain critical functions during unforeseen challenges.

This forward-thinking mindset is essential for fostering adaptability and ensuring that organizations can respond effectively to various types of disruptions, whether they stem from natural disasters, technological failures, or economic shifts. Proactive risk management enables organizations to sustain operations, protect stakeholder interests, and uphold their reputation in times of crisis. Thus, operational resilience is fundamentally about creating a culture of preparation and agility rather than simply reacting to problems as they surface.

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