Resiliency is the ability of a firm to cope with and absorb an external shock or extreme event that threatens the survival of the business. While certain business decisions like insurance can reduce the risk associated with catastrophic events. Resiliency theory is not necessarily centered on these type of mechanisms. Rather, it is focused on the firm’s ability to adapt to these disturbances and return to normal operations.
Strategic flexibility is the process of updating key strategies in a timely manner.This includes both enacting new resource commitments to adapt to the changing market conditions and halting and reversing existing commitments.
Credit is a vital input into the production cycle. Some businesses rely on the continual flow of financing to operate. Thus, ensuring this input is available when needed and at the lowest cost is of utmost importance.