The Cost of Absolute Resilience
Published on Monday, February 16, 2026
After several crises and disruptions, the company had reinforced all its safety margins. Massive inventories, multiple suppliers, operational redundancies — everything was designed to prevent disruption.
While this strategy ensured continuity, it had an unexpected side effect: the company’s growth slowed. Excessive caution and multiple safeguards limited its ability to innovate and seize new opportunities. Absolute resilience, paradoxically, became a strategic risk to future performance.
The executive committee realized that there is a delicate balance between protection and dynamism. Risk management should not only aim for survival but also support the company’s mission: creating value and growing. Excessive safety can hinder adaptability and agility, essential in a competitive and uncertain environment.
For the board, the lesson is clear: operational resilience is necessary, but it must be calibrated. Investments in security, redundancies, and safety margins should be weighed against their impact on growth strategy and innovation.
In summary, modern risk management is about striking the right balance between survival and performance. An organization can be protected against every known shock, but if it is paralyzed by caution, it risks stagnation or losing its competitive edge.
Depending on its business sector and the nature of its activities, your organization may be impacted, directly or indirectly, by this global risk over the coming years.
Photo by Jakub Zerdzicki
Whether you are a director, an executive or a manager, you may be wondering if your company is exposed to this global risk or other potential events. And if so, are you and your organization ready to face these challenges?
Should you need advice on the appropriate risk governance and enterprise risk management approach for your organization, please contact us.
Baldwin Global is an independent advisory group offering professional services, education and training in risk governance and enterprise risk management. We help our clients’ boards of directors and management teams attain their objectives by embedding sound risk oversight and management practices into their decision-making process to have a significant positive impact on their business.