Tees Business Issue 46 | Seite 79

ADVICE
Proactive – Gallagher’ s Stockton MD Lee Elgie says resilience and proactivity are key for any business.
Why resilience is becoming a boardroom priority for North-East businesses

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For businesses across the North- East, resilience is no longer just about preparing for worst-case scenarios. Increasingly, it is becoming part of everyday commercial decision-making.

From cyber incidents and supply chain disruption to severe weather events and economic uncertainty, organisations are operating in an environment where disruption can emerge quickly and often unexpectedly.
While many businesses have adapted well to a more volatile landscape in recent years, the challenge now is ensuring those plans remain practical, current and understood across the organisation.
Business continuity planning has traditionally been associated with major incidents or crisis management. However, many businesses now recognise that resilience is not simply about reacting to disruption— it is about maintaining confidence, protecting operations and enabling businesses to continue serving customers when challenges arise.
For North-East businesses in particular, resilience has taken on greater importance as firms navigate ongoing cost pressures, workforce challenges and continued supply chain uncertainty. Manufacturers, logistics firms, hospitality businesses and professional service organisations all face different operational risks, but the common thread is the need to prepare for disruption before it happens.
A business continuity plan( BCP) is designed to help organisations maintain or quickly restore critical operations during periods of disruption. But while many organisations have plans in place, a common challenge is ensuring they are regularly reviewed, tested and communicated effectively across the business.
Too often, continuity planning can become a document that sits untouched until an incident occurs. In reality, effective planning relies on businesses understanding which operations are critical, who is responsible for decisionmaking during disruption and how communication will work both internally and externally.
According to Lee Elgie, managing director at Gallagher’ s Stockton, businesses that approach continuity planning proactively are often in a much stronger position to respond calmly and decisively when challenges emerge.
“ The businesses that tend to respond best during disruption are usually the ones that have spent time thinking through scenarios in advance,” says Lee.“ That doesn’ t mean predicting every possible issue, but it does mean understanding your critical operations, your dependencies and how you would respond if something unexpected happened.”
Recent years have highlighted how quickly disruption can escalate. Cyber incidents continue to grow in frequency and sophistication, while businesses remain exposed to supplier disruption, infrastructure issues and weather-related events. Organisations are also becoming more aware of the reputational impact that operational disruption can have on customers, employees and stakeholders. And while many businesses now recognise the importance of continuity planning, regular testing and communication of those plans can still be inconsistent.
Communication is often one of the most overlooked aspects of resilience planning. During a crisis, uncertainty can quickly spread if employees, suppliers or customers are unclear about responsibilities, priorities or next steps. Businesses that communicate effectively during disruption are typically better positioned to reduce confusion and maintain trust.
That is why continuity planning increasingly extends beyond senior leadership teams. Employees need to understand their responsibilities during disruption, while suppliers and external partners may also play a critical role in maintaining operations.
For businesses in sectors such as manufacturing and logistics— both significant contributors to the North-East economy— supplier resilience has become particularly important. A disruption affecting one organisation can quickly create wider operational challenges across the supply chain.
Testing and exercising continuity plans is another area receiving greater focus. Scenario-based exercises and practical simulations can help businesses identify gaps in processes before a real incident occurs, allowing organisations to strengthen their response capabilities over time.
As businesses continue to operate in an increasingly unpredictable environment, resilience is becoming less about preparing for a single major crisis and more about building adaptability into everyday operations.
“ The organisations that are strongest over the long term are often those that can adapt quickly and communicate clearly during periods of uncertainty,” adds Lee.“ Resilience is no longer just a risk management discussion— it is increasingly a business performance discussion too.”
For many North-East businesses, that shift in mindset could prove increasingly valuable in the years ahead.
The voice of business in the Tees region | 79