Contemporary organizations function in a complex business and operational environment composed of closely interdependent systems. They are also complex by their internal structure, management and deployed modern technologies. This complexity is not always well understood, and cannot be efficiently controlled. As the complexity and interdependencies increase, man-made systems become more unstable creating conditions for cascading, system-level failures causing serious threats to both themselves and society in general. Such breakdowns may consist of a) serious physical damages and destruction of their physical assets (caused by natural disasters, extreme weather phenomena and climate change, malicious human actions, etc.), and/or b) large functional disruptions with no physical damages of assets (caused by major organization’s internal disturbances, market crashes, pandemics, disruptions of supply chains, etc.). Those sources of risks are basically external to organizations. They are unable to control them, but are deeply affected by those risks.
The latest case of the COVID-19 pandemic demonstrates the above. It is affecting both all sectors of life and businesses worldwide. It convincingly shows that we need to think, plan and act globally in order to deal with such situations that will also take place in the future. Thus, organizations have to find ways of coping with this reality to remain economically viable. We are of opinion that the concepts of structured Asset Management (AM) and resilience put together may provide an efficient framework in this regard.
Two case studies in a major North American electrical utility demonstrate the applicability of this approach: i) during an exceptional ice storm with significant damages of its physical assets, and ii) coping with challenges of COVID-19 with no destruction of its physical assets.