Resilience: Business Sustainability Based on Risk Management

Abstract

Businesses must be resilient to withstand many occurrences. Companies of all sizes can deal with adversity and possible danger in this manner. When things are unclear, it is critical to have a strong risk management strategy in place. In times of crisis, risk management enables businesses to remain adaptable and robust while avoiding any hurried or erroneous action. In the wake of recent crises like COVID-19, it is clear that risk management must be taken seriously. In the current epidemic, businesses worldwide have become more vulnerable due to the absence of appropriate risk management implementation (not the risk management method itself). Despite this, there is little knowledge about how resilience is related to risk management. Theoretically, it is also crucial to understand how these can impact corporate performance. Therefore, businesses with sufficient knowledge of resilience and risk management can be expected to protect their shareholders and customers against an unplanned disruption. Firms can deal with sustainable development and risk management by using the concepts of resilience, robustness, and antifragility. Therefore, in this chapter, to help businesses, resilience and risk management concepts were introduced, and the relationship between these two variables was explained. The findings can help enterprises to adopt good practices for proper planning and risk management, given the degree of resilience of that business. Its implications can help enterprises to adopt appropriate policies and provide valuable insights to help them develop risk management and resilience capacities to prevent and respond to related disasters.