How should industry’s resilience be developed and maintained?
As the operating environment of industrial companies becomes more uncertain and threats more diverse, preparedness for crises and other threats becomes increasingly important. Sustainable industrial operations require proactive planning, where risks are identified and prepared for effectively. Resilient operations withstand unexpected challenges and recover rapidly from crises.
Resilience refers to the ability to operate in changing conditions, to face disruptions and crises, and to recover and bounce back from crises. The concept is also a good way of describing the ability of companies to face changing conditions and recover from disruptions. However, resilience is created not only by preparing for crisis situations, but also by means of everyday operating models, flexible planning solutions, and strong cooperation with stakeholders.
Managing risks requires a plan
The starting point for developing crisis resistance and resilience is having a plan for managing risks. Such a plan can be developed, for example, by means of a comprehensive risk management model that is based on a strategy and produces a plan that can be implemented during a crisis.
In an industrial environment, everyday operating models themselves create the basis for resilient and crisis-resistant operations. As a basis for implementing the plan, it is important to collect information about the nature of operations and the risks, analyze them and determine the necessary measures. The key areas of preparedness vary: for example, in the technology industry, supply chains are critical, while in the food industry, energy availability is highlighted.
Resilience-based planning
When an industrial company plans a new investment, it is an important moment to also consider the overall level of crisis resilience and the speed of recovery. Solutions for securing energy supply can include energy storage, such as steam or heat accumulators, that can support production during energy supply disruptions. Backup power solutions and duplicated electricity supplies also increase the operational reliability of production.
To develop crisis resilience, it is also important to consider the adaptability of facilities and process solutions. During the design phase, this can mean, for example, avoiding basements or choosing process connections that enable flexible usage models. It is worth arranging the facilities so that the production layout can be changed easily and cost-effectively if necessary.
Increasingly important role of spare parts availability
The availability of spare parts can become a bottleneck in a crisis situation, so the design phase should favor standardized, easily available components, such as electric motors, pumps and valves. The versatility of components in different process areas can also reduce the need to tie up capital in large spare parts inventories, making it easier to manage availability challenges during a crisis.
At worst, losing the availability of automation components could paralyze the entire operation, so it is a good idea to try to utilize standard components and ensure availability from various sources in advance. In addition, the design phase can also map the suitability of potential replacement solutions for the most critical areas of operations.
Continuity management creates the foundation for operational resilience
Continuity management is a process that improves security of supply, by means of which a company aims to shorten the recovery time from disruptions and ensure the continuity of operations. In practice, continuity management procedures and operating methods are presented in the international ISO 22301 standard on security and resilience, which emphasizes the importance of the following:
- Understanding the needs of the organization and the need to develop business continuity management policies and objectives
- Implementing and utilizing controls and measures regarding the organization’s overall emergency management capability
- Monitoring and reviewing the performance and effectiveness of the business continuity management system
- Continuous improvement based on objective measurements
Whether a company has a standard in place or not, it provides a systematic framework for operation that ensures that the continuity and recovery of operations are as smooth as possible. Parts of the whole can also be integrated into the company’s other operational management and quality systems. Foresight plays an important role, so that responsibilities, roles and measures are clearly defined before a crisis occurs.
Special attention to cybersecurity
Security in all its dimensions is a key priority during crises. For industrial companies, the key areas of security include the following:
- Personal and occupational safety
- Information security and cybersecurity
- Fire and process safety
- Property and crime safety
- Environmental safety
- Food and water safety
It is important to understand that cyber threats can completely paralyze operations or have an irreversible impact on business, unlike many other areas of security. Although cybersecurity is a technology issue, knowledge of influence attempts and methods also plays a major role: in many cases, it is the human being who is the weakest link, so training and information can prevent major damage.
Progress through systematic work
When preparing for crises, it is important to examine threats holistically and systematically develop operations to become increasingly resilient. A good starting point in this activity is also to strive for continuous improvement with the following key steps:
- Implementation of risk assessment (examination of the current situation, identification of risks, determination of the magnitude of risks)
- Planning of measures (selection and prioritization)
- Implementation of measures and assessment of impacts
- Continuous improvement and development of operations (Plan-Do-Check-Act)
An important part of crisis resilience involves collaboration, both within the company and with stakeholders. The better networks and value chains function, the faster and with less damage it is possible to recover from crises.
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Towards crisis-resilient production operations
In Finland, crisis preparedness is based on a comprehensive security approach and security of supply. Industrial companies ensure the survival of society as a whole in crises, so developing their crisis resilience is also important from a societal perspective.
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