What operating resilience looks like

Operating resilience concerns the resources and flexibility available to a business when conditions change. It is not the same as an absence of volatility in reported results.

Consider customer concentration, cost flexibility, supplier dependence and financing commitments. A strong position in one area may be offset by a constraint in another.

The useful question is how the business could respond to a less favourable environment and what that response would require in cash, time and management attention.