The Covid-19 pandemic, while horrific on a social and economic level, is just the latest in a long series of convulsions that expose the vulnerabilities or brittle characteristics of unprepared companies.
Recent years have brought major shocks, including international trade wars, a plunge in oil prices and a financial crisis – each of which pulled the rug out from exposed companies. An increased march of government interventions has started to limit the options of technology giants.
Covid-19 has clearly made resilience a necessity for companies in all sectors. And the turbulence looks set to continue as globalisation unwinds, inequality rises, new technological risks emerge, and the effects of climate change manifest themselves more regularly and severely. Yet the dynamics of resilience aren’t always well understood by senior executives and boards of directors. In our recent conversations with business leaders, we’ve come to recognise five stubborn myths that distort the discussion. Dispelling these myths is the first step on the road to resilience.