What does the term 'resilience' refer to in a business context?

In a business context, 'resilience' primarily refers to the ability of an organization to maintain its performance in the face of external market variability and challenges. This encompasses how well a business can adapt to disruptions, whether those arise from economic downturns, changes in consumer demand, supply chain issues, or any other unforeseen events that might affect operations. A resilient organization is able to withstand shocks and continue functioning effectively, thus ensuring stability and sustained performance.

This concept of resilience emphasizes adaptability and continuity rather than a complete elimination of risks or the ability to eliminate all uncertainties in operations. While forecasting and innovation are essential for growth and strategic planning, they don’t directly define resilience, which is more focused on the organization's capacity to absorb and recover from changes in the environment.