ABSTRACT

This chapter examines the use of resource capital within resilient organizations. Organizations that have money to spend in discretionary ways fair better in disaster situations and times of significant change. As challenging as it may be to keep additional cash in reserve, even this is not enough. Resilient organizations are able to alter their spending strategies in anticipation of and response to dramatic changes in their environments. There are three key lessons regarding how truly resilient organizations handle capital resources when facing significant incidents: They reduce and shift their spending, increase their spending in key areas, and mobilize their resources effectively. This chapter examines each of these three lessons in detail. It concludes with a brief discussion of the critical nature of supporting infrastructure.