A method for operating a speed control system of a vehicle having a plurality of wheels is provided. The method comprises receiving one or more electrical signals representative of vehicle-related information. The method further comprises determining, based on the one or more electrical signals representative of vehicle-related information, that one or more of the wheels of the vehicle have overcome an obstacle or are about to overcome an obstacle and that therefore a reduction in an applied drive torque to one or more of the wheels of the vehicle by a powertrain subsystem (applied drive torque) will be required to maintain the speed of the vehicle at a target set-speed of the speed control system. The method still further comprises automatically commanding the application of a retarding torque to one or more of the wheels of the vehicle to counteract the effect of an overrun condition in the powertrain subsystem from increasing the speed of the vehicle. A system for controlling the speed of a vehicle comprising an electronic control unit configured to perform the above-described methodology is also provided.