Business executives can best appreciate the value of financial resilience in the midst of overcoming their worst setback, having withstood the type of event that could have put their reputations—and, for that matter, their entire companies—at risk.
In the wake of any such crisis, whether manmade or natural, the ability to continue accommodating customers and keeping employees on the payroll can seem like an incalculably valuable payoff. In truth, it’s the foreseeable outcome of having detected and classified both familiar and hidden risks as well as embedding disruption-defying strategies into the corporate DNA. In addition to managing risk, finance executives need to build a budget that encompasses the kind of farsighted investments that will effectively protect the company from both known and unknown risks. The former category might include, for example, increased regulatory demands, while the latter appears to be growing at a fast rate and includes evolving dangers, including cyber threats or a changing economic environment.