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

Authors: Werner Gleißner

Addresses: Dresden University of Technology (Business Administration, esp. Risk Management) and Chairman of FutureValue Group AG and EACVA (European Association of Certified Valuators and Analysts), FutureValue Group AG, Obere Gärten 18, 70771, Leinfelden-Echterdingen, Germany

Abstract: 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.

Keywords: capability-based view; core competence; financial sustainability; resilience; risk; risk aggregation; risk analysis; risk management; robustness; strategy; uncertainty.

DOI: 10.1504/IJRAM.2023.132331

International Journal of Risk Assessment and Management, 2023 Vol.26 No.1, pp.75 - 94

Received: 01 Jun 2022
Received in revised form: 21 Jul 2022
Accepted: 05 Dec 2022

Published online: 18 Jul 2023 *

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