Building operational resilience: The importance of the people factor and role of branch managers

By Lewis FRIMPONG

Operational resilience has become a central concept across industries, particularly in banking. According to the Basel Committee for Banking Supervision (BCBS), it is the ability of a bank to deliver critical operations through disruption. These disruptions may arise from technology failures, disasters, or human and system-related downtime. Building resilience enables banks and their branches to identify, withstand, adapt to, and recover from such events.
The BCBS introduced the Principles for the Sound Management of Operational Risk (PSMOR) in 2011, providing a structured framework for managing operational risk. Subsequent revisions led to the Principles for Operational Resilience (POR) in 2021, incorporating lessons from major disruptions such as the COVID-19 pandemic. Together, these frameworks guide banks globally in strengthening operational capacity and preparedness.
In Ghana, these principles are reinforced by directives from the Bank of Ghana (BOG), including the Risk Management Directive (2021), Outsourcing Directive (2024), Cyber and Information Security Directive (Exposure Draft, 2025), Climate-Related Financial Risk Directive (Exposure Draft, 2024), and Guidelines on Stress Testing (Exposure Draft, 2026). These directives emphasize key elements of operational resilience such as governance, business continuity planning, third-party risk management, incident response, and ICT resilience. While boards and senior management are primarily responsible for these frameworks, staff at all levels now have access to the knowledge needed to contribute meaningfully to risk management.
This article highlights the critical role of branch managers and their teams in building operational resilience. Branch staff represent the “first line of defence” and are directly involved in daily operations where risks materialize. As leaders of these teams, branch managers must ensure that their staff are equipped to identify, prevent, and respond to risks effectively.
Why People Matter in Operational Resilience
People play a crucial role in operational resilience. A McKinsey & Company survey (2025) indicates that people risk accounts for about 18% of non-financial risks in banks. Even when disruptions appear to be system-related, there is often a human element, such as poor judgment or failure to follow procedures. For example, ATM downtime affecting customer satisfaction may result from failure to conduct routine checks or anticipate demand. Similarly, the Bank of Ghana’s 2024 fraud report highlights a 33% increase in staff involvement in fraudulent activities, underscoring the growing importance of managing human-related risks, especially in cyber security.
Employees are responsible for safeguarding the confidentiality, integrity, and availability of information assets. However, negligence, non-compliance, or deliberate misconduct can undermine controls and expose the bank to internal and external threats. Therefore, the “people factor” must be central to any resilience strategy.
The Critical Role of Branch Managers
Branch managers are effectively the risk managers of their branches. They oversee daily operations and are exposed to risks such as fraud, data breaches, theft, and business continuity challenges. Their teams handle critical functions including cash management, customer data, payment systems, and operational equipment. Effective leadership is essential in ensuring that teams operate in a risk-aware manner. Branch managers must guide their teams to anticipate disruptions, implement business continuity and disaster recovery plans, prevent fraud, and adapt to emerging risks. Ultimately, a well-led team can serve as a strong defense against operational failures.
Practical Tips for Managing People towards Resilience
While people can be sources of risk, they are also vital assets in mitigating it. Their awareness, responsiveness, and judgment can significantly strengthen resilience. The following practices can help branch managers harness the potential of their teams:
1. Internalize the Bank’s Risk Culture
A strong risk culture is foundational to operational resilience. This culture is embedded in the bank’s risk management framework and strategy, but these documents are often underutilized. Branch managers should ensure that all team members understand and apply these principles in their daily work. This can be achieved by:
• Encouraging staff to study and understand risk management policies.
• Demonstrating strict adherence to procedures as a leader.
• Holding regular meetings to discuss operational risks and mitigation strategies.
• Using post-incident reviews as learning opportunities.
For example, policies like the “Clean Desk” rule should be consistently enforced to prevent unauthorized exposure of sensitive information. When managers model compliance and maintain high standards, staff are more likely to follow suit. A well-internalized risk culture ensures that employees remain alert to potential threats and respond effectively during disruptions.
2. Implement Preventive Supervision
Preventive supervision focuses on identifying risks before they materialize. Rather than reacting to incidents, managers should proactively monitor transactions, processes, and systems. This involves:
• Verifying transactions before approval.
• Reviewing how results are achieved, not just the outcomes.
• Identifying procedural gaps or deviations.
• Conducting routine checks on critical assets such as backup systems, vault keys, and equipment.
The importance of this approach is evident in incidents like the “London Whale” case, where significant losses occurred due to ignored warnings and poor managerial oversight. This highlights the need for vigilance and critical evaluation of risk signals. Preventive supervision does not mean micromanaging but ensuring accountability and adherence to procedures. A lax environment can normalize errors and reduce sensitivity to risk, increasing vulnerability.
3. Emphasize Training, Communication, and Role Clarity
Continuous learning is essential for building resilience. Every incident presents an opportunity to improve processes and strengthen awareness.
Branch managers should:
• Provide regular training on business continuity and risk management.
• Clearly define roles and responsibilities to avoid confusion.
• Conduct simulations and drills to prepare staff for potential disruptions.
• Encourage open communication about risks and challenges.
When employees understand their roles and are well-trained, they are better equipped to respond effectively during crises. This preparedness enhances the branch’s ability to maintain operations under stress.
Conclusion
Operational resilience is not solely the responsibility of boards and senior management. Branch managers and their teams play an equally critical role in ensuring that operations continue smoothly during disruptions. By fostering a strong risk culture, implementing preventive supervision, and investing in training and communication, branch managers can create an environment where employees actively contribute to risk management. While it is impossible to eliminate all risks, a well-prepared and vigilant team can detect and respond to threats early.
In a typical bank branch, where customer interaction is immediate and visible, the strength of the human element ultimately determines whether services endure or fail. Therefore, building operational resilience must begin with people—empowered, informed, and ready to act.

The writer is a Branch manager in the Retail Network of Societe Generale Ghana, PLC. He is an Associate Member of The Chartered Institute of Bankers, Ghana. He has experience in leadership, team management, business development and Branch management. He can be reached on [email protected]

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