What makes a company resilient in a crisis?

10 August 2020
| By partnerarticle |
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Aviva Investors looks at what resilience means in the current context, as COVID-19 hits global economies

The coronavirus pandemic has roiled markets and disrupted business models around the world. One consequence of the crisis has been a renewed focus on what makes a company resilient: from the size of its debts to the consistency of its revenue streams.

But resilience is not a static quality. What it means to be resilient will shift under different market conditions, argues Mikhail Zverev, head of global equities at Aviva Investors.

“You need to ask the question: ‘resilient to what?’,” he says. “Like ‘quality’, ‘resilience’ may sound like an absolute concept, but it depends on context. Whether the risk is a theoretical black swan or a clear and present danger, equity investors need to look at a company’s capacity to respond and adapt to change.”

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