Which of the following strategies best supports 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!

Implementing robust continuity planning is essential for supporting operational resilience because it ensures that an organization can maintain essential functions during and after disruptive events. Continuity planning involves developing strategies and processes that help minimize the impact of potential disruptions, such as natural disasters, cyber incidents, or other unexpected challenges.

With strong continuity planning in place, an organization can quickly recover and resume operations, thereby safeguarding its assets, resources, and stakeholder interests. This approach encompasses risk assessments, business impact analyses, and the creation of plans that outline how to respond to various emergencies. It fosters a culture of preparedness and adaptability, which is crucial for maintaining operations in the face of adversity.

In contrast, the other strategies do not adequately support operational resilience. Focusing solely on financial performance might ignore the structural vulnerabilities within the organization, while limiting operational processes to only essential functions could hinder flexibility and responsiveness during a crisis. Lastly, relying on a single vendor can create a risk of dependency, leaving the organization vulnerable if that vendor encounters difficulties. By prioritizing robust continuity planning, an organization can ensure a more comprehensive approach to resilience.

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