Abstract:
The 21st century has been marked by a series of global crises that have consistently impacted business performance in a negative way. These events could be financial, political, health-wise or environmental and the effect on business varies depending on the nature of the crisis and the characteristics of the business entity. Cumulatively, these challenges present a scenario of social, economic and environmental volatility.
Seville (2016, p.3) states that at some stage in the life of an organization it will experience a disruptive crisis and research shows that every organization has a 40% chance of experiencing a crisis within five (5) years. Resilience is a core business priority that concerns an organization’s capacity to continue operations, protect revenue, and maintain competitive advantage when faced with unpredictable shocks or disruptive events. A study conducted by the Business Continuity Institute (BCI) found that organizations facing disruption without having a robust plan experienced an average revenue loss of 43% (BCI, 2020 Horizon Scan Report). Therefore, resilience is vital to financial performance and stability as it determines whether a business can execute its strategy in a volatile world.
Author: LESLIE ROGERS
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