Failure is not an option: Getting resilience right 

IF THE past three years have taught Asian business leaders anything, it is to expect the unexpected. A pandemic. A war in Europe. Inflation. And then there are long-term issues such as climate change and the changing dynamics of globalisation. In short, don’t expect a quiet life anytime soon.

No business can solve these problems on its own. What they can do, however, is to be prepared. When McKinsey examined the performance of more than 1,000 global companies during the 2008-2010 financial crisis, it found that the most resilient ones suffered less during the downturn, recovered faster, and then kept going. That is why resilience matters: It is an essential element of competitive advantage.

The stakes may be higher for Asia than any other region because here is where the action is. Asia is the engine of growth, accounting for more than half of global investment over the past decade. Asia is also a leader in critical industries, such as semiconductors, and in both technical and business innovation.