Financial Resilience - A Determining Factor Of A Company'S Management Strategy

By financial resilience we mean the ability and capacity of a company to cope, adapt, reorganize and readjust to life before the shock, whether economic, financial or operational. In other words, financial resilience represents the ability and capacity of a company to cope with unexpected changes. This can be viewed from two points of view: from the point of view of planning, as well as from the point of view of adaptation. Planned resilience is the one that manifests itself before the occurrence of unpleasant events, while adaptive resilience appears after the event occurs and involves analysis and adaptation to changes and uncertainties. In the context of a complex global environment, under the impact of the intensity of economic and financial shocks, financial resilience has become one of the main priorities of a company's management. For a company to have financial resilience, strategic management must have a vision, mission, and objectives that must include crisis scenarios, backup plans, and strategic options. Regarding the research and results in the field, I would like to mention that management education and innovation have a significant impact on the financial resilience of companies. For example, the study Understanding Financial Resilience through Innovation and Top Management shows that management education and innovation have a significant impact on financial resilience. [9] The findings and research in the field are relevant for the strategic management of the company because they involve deliberate decisions, long-term planning, resource allocation, flexibility and adaptation. The purpose of this article is to present the main factors that influence a company's financial resilience and to highlight its role and importance in the company's strategic management.