Skip to main content
SpringerLink
Log in

Resilience: Business Sustainability Based on Risk Management

  • Chapter
  • First Online:
Advances in Reliability, Failure and Risk Analysis

Part of the book series: Industrial and Applied Mathematics ((INAMA))

Abstract

Businesses must be resilient to withstand many occurrences. Companies of all sizes can deal with adversity and possible danger in this manner. When things are unclear, it is critical to have a strong risk management strategy in place. In times of crisis, risk management enables businesses to remain adaptable and robust while avoiding any hurried or erroneous action. In the wake of recent crises like COVID-19, it is clear that risk management must be taken seriously. In the current epidemic, businesses worldwide have become more vulnerable due to the absence of appropriate risk management implementation (not the risk management method itself). Despite this, there is little knowledge about how resilience is related to risk management. Theoretically, it is also crucial to understand how these can impact corporate performance. Therefore, businesses with sufficient knowledge of resilience and risk management can be expected to protect their shareholders and customers against an unplanned disruption. Firms can deal with sustainable development and risk management by using the concepts of resilience, robustness, and antifragility. Therefore, in this chapter, to help businesses, resilience and risk management concepts were introduced, and the relationship between these two variables was explained. The findings can help enterprises to adopt good practices for proper planning and risk management, given the degree of resilience of that business. Its implications can help enterprises to adopt appropriate policies and provide valuable insights to help them develop risk management and resilience capacities to prevent and respond to related disasters.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 199.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Aleksić, A., Stefanović, M., Arsovski, S., Tadić, D.: An assessment of organizational resilience potential in SMEs of the process industry, a fuzzy approach. J. Loss Prev. Process Ind. 26(6), 1238–1245 (2013)

    Article  Google Scholar 

  2. Arcese, G., Traverso, M.: Sustainability and resilience assessment in the pandemic emergency. Symphonya. Emerging Issues Manage. (symphonya.unicusano.it) (2), 99–117 (2021).https://doi.org/10.4468/2021.2.09arcese.traverso

  3. Ashari, S., Krismiaji, K.: Audit committee characteristics and financial performance: Indonesian evidence. Equity 22(2), 139 (2020)

    Article  Google Scholar 

  4. Barbosa, M.W.: Uncovering research streams on agri-food supply chain management: a bibliometric study: Global Food Security 28, 100517 (2021). https://doi.org/10.1016/j.gfs.2021.100517

  5. Bellandi, M.: Some notes on the impacts of Covid-19 on Italian SME productive systems. Symphonya. Emerging Issues Manage. (symphonya.unicusano.it) (2), 63–72 (2020). https://doi.org/10.4468/2020.2.07bellandi

  6. Berkes, F.: Understanding uncertainty and reducing vulnerability: lessons from resilience thinking. Nat. Hazards 41(2), 283–295 (2007)

    Article  Google Scholar 

  7. Blečić, I., Cecchini, A.: Antifragile planning. Plan. Theor. 19(2), 172–192 (2020)

    Article  Google Scholar 

  8. Briguglio, L., Cordina, G., Farrugia, N., Vella, S.: Economic vulnerability and resilience: concepts and measurements. Oxf. Dev. Stud. 37(3), 229–247 (2009)

    Article  Google Scholar 

  9. Carlson, J.M., Doyle, J.: Complexity and robustness. Proc. Natl. Acad. Sci. 99, 2538–2545 (2002)

    Article  Google Scholar 

  10. Castro, L.M., Gulías, V.M., Abalde, C., Santiago Jorge, J.: Managing the risks of risk management. J. Decis. Syst. 17(4), 501–521 (2008)

    Article  Google Scholar 

  11. Chowdhury, M., Prayag, G., Orchiston, C., Spector, S.: Postdisaster social capital, adaptive resilience and business performance of tourism organizations in Christchurch, New Zealand. J. Travel Res. 58(7), 1209–1226 (2019)

    Article  Google Scholar 

  12. Condamin, L., Louisot, J.P., Naım, P.: Risk Quantification-Management, Diagnosis and Hedging. Wiley, New York (2006)

    Google Scholar 

  13. Connelly, C.: From disaster recovery to business resilience. In: Enterprise Risk Management Seminar Institute of Actuaries of Australia (2011)

    Google Scholar 

  14. Crane, L., Gantz, G., Isaacs, S., Jose, D., Sharp, R.: Introduction to risk management: understanding agricultural risks: production, marketing, financial, legal, human Resources, 2nd edn. Extension Risk Management Education and Risk Management Agency (2013)

    Google Scholar 

  15. Cutter, S.L., Barnes, L., Berry, M., Burton, C., Evans, E., Tate, E., Webb, J.: A place-based model for understanding community resilience to natural disasters. Glob. Environ. Chang. 18(4), 598–606 (2008)

    Article  Google Scholar 

  16. Dadashpoor, H., Adeli, Z.: Measuring the amount of regional resilience in Qazvin urban region. J. Emergency Manage. 4(2), 73–84 (2016). (In Persian)

    Google Scholar 

  17. Dahles, H., Susilowati, T.P.: Business resilience in times of growth and crisis. Ann. Tour. Res. 51, 34–50 (2015)

    Article  Google Scholar 

  18. Demmer, W.A., Vickery, S.K., Calantone, R.: Engendering resilience in small-and medium-sized enterprises (SMEs): a case study of Demmer Corporation. Int. J. Prod. Res. 49(18), 5395–5413 (2011)

    Article  Google Scholar 

  19. Dubey, R., Gunasekaran, A., Childe, S.J., Papadopoulos, T., Blome, C., Luo, Z.: Antecedents of resilient supply chains: an empirical study. IEEE Trans. Eng. Manage. 66(1), 8–19 (2017)

    Article  Google Scholar 

  20. Durach, C.F., Wieland, A., Machuca, J.A.: Antecedents and dimensions of supply chain robustness: a systematic literature review. Int. J. Phys. Distrib. Logist. Manag. 45, 118–137 (2015)

    Article  Google Scholar 

  21. Dwyer, A., Zoppou, C., Nielsen, O., Day, S., Roberts, S.: Quantifying Social Vulnerability: A Methodology for Identifying those at Risk to Natural Hazards (2004)

    Google Scholar 

  22. Ellul, A., Yerramilli, V.: Stronger risk controls, lower risk: evidence from US bank holding companies. J. Financ. 68(5), 1757–1803 (2013)

    Article  Google Scholar 

  23. Fiksel, J.: Sustainability and resilience: toward a systems approach. Sustain.: Sci. Pract. Policy 2(2), 14–21 (2006)

    Google Scholar 

  24. Florio, C., Leoni, G.: Enterprise risk management and firm performance: the Italian case. Br. Account. Rev. 49(1), 56–74 (2017)

    Article  Google Scholar 

  25. George, G., Howard-Grenville, J., Joshi, A., Tihanyi, L.: Understanding and tackling societal grand challenges through management research. Acad. Manag. J. 59(6), 1880–1895 (2016)

    Article  Google Scholar 

  26. Hamel, G., Välikangas, L.: The quest for resilience. Harv. Bus. Rev. 81, 52–63 (2003)

    Google Scholar 

  27. Herbane, B.: Small business research: time for a crisis-based view. Int. Small Bus. J. 28(1), 43–64 (2010)

    Article  Google Scholar 

  28. Heredia, J., Rubiños, C., Vega, W., Heredia, W., Flores, A.: New strategies to explain organizational resilience on the firms: a cross-countries configurations approach. Sustainability 14(3), 1612 (2022). https://doi.org/10.3390/su14031612

    Article  Google Scholar 

  29. Hillmann, J., Guenther, E.: Organizational resilience: a valuable construct for management research? Int. J. Manag. Rev. 23, 7–44 (2021)

    Article  Google Scholar 

  30. Holling, C.S.: Resilience and stability of ecological systems. Ann. Rev. Ecol. Syst. 4(1), 1–23 (1973)

    Article  Google Scholar 

  31. Holton, G.A.: Defining risk. Financial Anal. J. 60(6), 19–25 (2004)

    Article  Google Scholar 

  32. Hopkin, P.: Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management. Kogan Page Publishers (2018)

    Google Scholar 

  33. Imeni, M.: Fuzzy logic in accounting and auditing. J. Fuzzy Extension Appl. 1(1), 69–75 (2020)

    Google Scholar 

  34. Imeni, M., Fallah, M., Edalatpanah, S.A.: The effect of managerial ability on earnings classification shifting and agency cost of Iranian listed companies. In: Discrete Dynamics in Nature and Society (2021)

    Google Scholar 

  35. Iwedi, M., Anderson, O.E., Barisua, P.S., Zaagha, S.A.: Enterprise risk management practice and shareholders value: evidence from selected quoted firms in Nigeria. Green Finance 2(2), 197–211 (2020)

    Article  Google Scholar 

  36. Kantur, D., İşeri-Say, A.: Organizational resilience: a conceptual integrative framework. J. Manag. Organ. 18, 762–773 (2012)

    Article  Google Scholar 

  37. Kast, R., Lapied, A.: Economics and Finance of Risk and of the Future. Wiley, New York (2006)

    MATH  Google Scholar 

  38. Kitano, H.: Biological robustness. Nat. Rev. Genet. 5, 826–837 (2004)

    Article  Google Scholar 

  39. Liu, C.L., Shang, K.C., Lirn, T.C., Lai, K.H., Lun, Y.V.: Supply chain resilience, firm performance, and management policies in the liner shipping industry. Transp. Res. Part A: Policy Pract. 110, 202–219 (2018)

    Google Scholar 

  40. Louisot, J.P.: Risk and/or resilience management. Risk Governance Control: Financial Markets Inst. 5(2), 84–91 (2015)

    Google Scholar 

  41. Mamaghani, E.J., Medini, K.: Resilience, agility and risk management in production ramp-up. Proc. CIRP 103, 37–41 (2021)

    Article  Google Scholar 

  42. Martin, R., Sunley, P.: On the notion of regional economic resilience: conceptualization and explanation. J. Econ. Geogr. 15(1), 1–42 (2015)

    Article  Google Scholar 

  43. Martinelli, E., Dellanoce, F., Carozza, G.: Business resilience and risk management during the Covid-19 pandemic: the Amadori case-study. Sinergie Italian J. Manage. 39(3), 123–139 (2021)

    Article  Google Scholar 

  44. Merna, T., Al-Thani, F.F.: Corporate Risk Management. Wiley, New York (2008)

    Google Scholar 

  45. Mitchell, T., Harris, K.: Resilience: a risk management approach. In: ODI Background Note, pp. 1–7 (2012)

    Google Scholar 

  46. Moeller, R.R.: Brink’s Modern Internal Auditing: A Common Body of Knowledge. Wiley, New York (2009)

    Google Scholar 

  47. Mohammadi, T., Shakeri, A., Taghavi, M., Ahmadi, M.: Explaining the concepts, dimensions and components of economic resilience. Basij Strategic Stud. 20(75), 89–120 (2017). (In Persian)

    Google Scholar 

  48. Moore, S.B., Manring, S.L.: Strategy development in small and medium sized enterprises for sustainability and increased value creation. J. Clean. Prod. 17(2), 276–282 (2009)

    Article  Google Scholar 

  49. Munoz, A., Billsberry, J., Ambrosini, V.: Resilience, robustness, and antifragility: towards an appreciation of distinct organizational responses to adversity. Int. J. Manag. Rev. 24(2), 181–187 (2022)

    Article  Google Scholar 

  50. Park, J., Seager, T.P., Rao, P.S.C., Convertino, M., Linkov, I.: Integrating risk and resilience approaches to catastrophe management in engineering systems. Risk Anal. 33(3), 356–367 (2013)

    Article  Google Scholar 

  51. Perrings, C.: Resilience and sustainable development. Environ. Dev. Econ. 11(4), 417–427 (2006)

    Article  Google Scholar 

  52. Pike, R., Neale, B., Linsley, P.: Corporate Finance and Investment: Decisions and Strategies, 7th edn. Pearson Education Ltd (2012)

    Google Scholar 

  53. Pimm, S.L.: The Balance of Nature?: Ecological Issues in the Conservation of Species and Communities. University of Chicago Press (1991)

    Google Scholar 

  54. Radović-Marković, M., Shoaib Farooq, M., Marković, D.: Strengthening the resilience of small and medium-sized enterprises. In: Review of Applied Socio-economic Research, pp. 345–356 (2017)

    Google Scholar 

  55. Ramezani, J., Camarinha-Matos, L.M.: Approaches for resilience and antifragility in collaborative business ecosystems. Technol. Forecast. Soc. Chang. 151, 1–26 (2020)

    Article  Google Scholar 

  56. Rezaei Soufi, H., Esfahanipour, A., Akbarpour Shirazi, M.: Risk reduction through enhancing risk management by resilience. Int. J. Disaster Risk Reduction 64, 102497 (2021). https://doi.org/10.1016/j.ijdrr.2021.102497

    Article  Google Scholar 

  57. Romney, M.B., Steinbart, P.J.: Accounting Information Systems, 12th edn. Pearson Education Ltd (2012)

    Google Scholar 

  58. Rose, A.: Defining and measuring economic resilience to disasters. Disaster Prevention Manage.: Int. J. 13, 307–314 (2004)

    Article  Google Scholar 

  59. Rose, A.: Defining and Measuring Economic Resilience from a Societal, Environmental and Security Perspective. Springer, Heidelberg (2017)

    Book  Google Scholar 

  60. Rose, A., Krausmann, E.: An economic framework for the development of a resilience index for business recovery. Int. J. Disaster Risk Reduction 5, 73–83 (2013)

    Article  Google Scholar 

  61. Shad, M.K., Lai, F.W., Fatt, C.L., Klemeš, J.J., Bokhari, A.: Integrating sustainability reporting into enterprise risk management and its relationship with business performance: a conceptual framework. J. Clean. Prod. 208, 415–425 (2019)

    Article  Google Scholar 

  62. Shatnawi, S., Hanefah, M., Adaa, A., Eldaia, M.: The moderating effect of enterprise risk management on the relationship between audit committee characteristics and corporate performance: a conceptual case of Jordan. Int. J. Acad. Res. Bus. Soc. Sci. 9(5), 177–194 (2019)

    Google Scholar 

  63. Sheffi, Y.: Building a resilient supply chain. Harv. Bus. Rev. 1(8), 1–4 (2005)

    Google Scholar 

  64. Skouloudis, A., Tsalis, T., Nikolaou, I., Evangelinos, K., Leal Filho, W.: Small & medium-sized enterprises, organizational resilience capacity and flash floods: insights from a literature review. Sustainability 12(18), 7437 (2020)

    Article  Google Scholar 

  65. Smith, D., Fischbacher, M.: The changing nature of risk and risk management: the challenge of borders, uncertainty and resilience. Risk Manage. 11(1), 1–12 (2009)

    Article  Google Scholar 

  66. Somers, S.: Measuring resilience potential: an adaptive strategy for organizational crisis planning. J. Contingencies Crisis Manage. 17(1), 12–23 (2009)

    Article  Google Scholar 

  67. Sorourkhah. A., Edalatpanah. S.A.: Using a combination of Matrix Approach to Robustness Analysis (MARA) and Fuzzy DEMATEL-Based ANP (FDANP) to choose the best decision. Int. J. Math. Eng. Manage. Sci. 7(1), 68–80 (2022). https://doi.org/10.33889/IJMEMS.2022.7.1.005

  68. Sorourkhah. A., Babaie-Kafaki. S., Azar. A., Shafiei Nikabadi. M.: A fuzzy-weighted approach to the problem of selecting the right strategy using the robustness analysis (case study: Iran automotive industry). Fuzzy Inf. Eng. 11(1), 39–53 (2019). https://doi.org/10.1080/16168658.2021.1886811

  69. Spikin, I.C.: Risk management theory: the integrated perspective and its application in the public sector. Estado, Gobierno y Gestión Pública 21, 89–126 (2013)

    Google Scholar 

  70. Taleb, N.N.: Antifragile: How to Live in a World We Don’t Understand, vol. 3. Allen Lane, London (2012)

    Google Scholar 

  71. Torabi, S.A., Giahi, R., Sahebjamnia, N.: An enhanced risk assessment framework for business continuity management systems. Saf. Sci. 89, 201–218 (2016)

    Article  Google Scholar 

  72. Van Der Vegt, G.S., Essens, P., Wahlström, M., George, G.: Managing risk and resilience. Acad. Manag. J. 58(4), 971–980 (2015)

    Article  Google Scholar 

  73. Van Gils, A.: Management and governance in Dutch SMEs. Eur. Manage. J. 23(5), 583–589 (2005)

    Google Scholar 

  74. Varmazyari, H., Imani, B.: Analyzing resilience of rural businesses in Malekan County. J. Entrepreneurship Dev. 10(1), 181–200 (2017). (In Persian)

    Google Scholar 

  75. Walker, B., Holling, C.S., Carpenter, S., Kinzig, A.: Resilience, adaptability and transformability in social–ecological systems. Ecol. Soc. 9, 1–10 (2004)

    Google Scholar 

  76. Yang, S., Ishtiaq, M., Anwar, M.: Enterprise risk management practices and firm performance, the mediating role of competitive advantage and the moderating role of financial literacy. J. Risk Financial Manage. 11(3), 35 (2018). https://doi.org/10.3390/jrfm11030035

    Article  Google Scholar 

  77. Zaman, G., Vasile, V.: Conceptual framework of economic resilience and vulnerability at national and regional levels. Romanian J. Econ. 39(2), 48 (2014)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Accounting, Ayandegan Institute of Higher Education, Tonekabon, Iran

    Mohsen Imeni

  2. Department of Applied Mathematics, Ayandegan Institute of Higher Education, Tonekabon, Iran

    Seyyed Ahmad Edalatpanah

Authors
  1. Mohsen Imeni
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Seyyed Ahmad Edalatpanah
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Seyyed Ahmad Edalatpanah .

Editor information

Editors and Affiliations

  1. School of Mathematics, Thapar Institute of Engineering and Technology, Patiala, Punjab, India

    Harish Garg

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Imeni, M., Edalatpanah, S.A. (2023). Resilience: Business Sustainability Based on Risk Management. In: Garg, H. (eds) Advances in Reliability, Failure and Risk Analysis. Industrial and Applied Mathematics. Springer, Singapore. https://doi.org/10.1007/978-981-19-9909-3_9

Download citation

Publish with us

Policies and ethics

Search

Navigation