Casualty Actuarial Society (CAS) Practice Exam

What is the primary goal of a risk management approach guided by operational resilience?

1. Creating an unchanging organization

2. Building a strong organization that avoids risks

3. Forming an adaptable organization

4. Minimizing employee engagement

The correct answer is: Forming an adaptable organization

The primary goal of a risk management approach guided by operational resilience is to form an adaptable organization. Operational resilience focuses on an organization's ability to prepare for, respond to, and recover from unexpected disruptions while ensuring that critical operations continue effectively. By fostering adaptability, organizations can navigate uncertainties, learn from experiences, and adjust their strategies in real time to manage risks effectively. This adaptability allows businesses to pivot in response to changing conditions, whether they are economic shifts, technological advancements, or unforeseen disruptions such as natural disasters or pandemics. By prioritizing this flexible approach, organizations ensure that they can sustain their operations and safeguard their interests while also continuing to meet the needs of their stakeholders. So, in essence, forming an adaptable organization is at the core of operational resilience, enabling a proactive stance toward risk management rather than a purely defensive one.