On The Art of Creating and Managing Policies: Facilitating the Emergence of Resilience

Resilience denotes an organization’s ability to adjust effectively to the multifaceted impact of internal and external events over a significant time period. To be resilient, an organisation must be able to deal with unexpected and disruptive events as well as to understand the longer term impact of such events. In the Financial Services domain this translates into the ability to identify and successfully manage risk at all levels in the organization while sustaining a profitable business. Key tools for risk management include effective policy design and policy management processes. Based on a system state view of businesses, the paper outlines some principles for organising policy design and processes related to policy management, using an example from the Financial Services as an illustration.