Uncertainty and resilience in strategic management: profile of a robust company

Uncertainty must be considered when developing business strategies as part of a corporate strategic management process, to ensure that companies have adequate resilience to withstand crises. The concept of a 'robust company' outlined in strategic management terms in this paper is an integrative approach that combines findings from the areas of risk management, strategic management, corporate ratings, and insolvency research, as well as empirical capital market research. Robustness is the ability of a system to survive negative shocks while maintaining a defined minimum level of success (performance) in the long term. Research findings suggest that robust companies exhibit the following three key characteristics: high financial sustainability (a stable rating, low earnings risk), a robust strategy with stable strategic success potential as a driver of future financial performance and company value, and a high level of competence in dealing with risk, especially in making business decisions.