We have entered an era that will increasingly be defined by risk. The latest World Economic Forum annual Global Risks Report assessed the likelihood and impact of a series of economic, environmental, geopolitical, societal and technological risks, and identified these as pointing to an increasingly uncertain and volatile future.1 One of the key challenges facing business leaders today is how to prepare for this future. Traditionally, businesses have been confronted by one shock or one disruption at a time. But even in the face of such singular events, history has more often shown that business has underestimated the likelihood of such events and shown limited understanding of its own exposure. The projected future, however, is one in which action will need to replace rhetoric and verbal commitments: a new approach to risk will be required. With shocks occurring not only more frequently but also simultaneously, it will be the capacity of businesses to anticipate and adapt rather than react that will increasingly define the winners and losers.

Following the onset of the COVID-19 pandemic, there has been a broad understanding of this new normal, which has given rise to a new imperative – the need to invest in resilience. Resilience is often defined as the capacity of institutions to withstand disruption and recover quickly. But emerging research is pointing to the broader role that investment in resilience will play in the future.

Recent World Economic Forum research suggests that the impact of resilience (or lack of it) on annual GDP could be between 1% and 5%2 globally in the future. As a result, investment in resilience is necessary to make an organization not only stronger and more secure but also more profitable and sustainable.