To design for optionality for growth, not redundancy for risk mitigation The rethinking: Resilience was once insurance against rare events. The companies that will thrive amid structural volatility are those that treat optionality as strategy, not redundancy as cost. The mandate: Building financial and operational elasticity that allows rapid reallocation of resources when disruption strikes. True resilience is measured not by how steady an organization remains, but by how quickly it recovers and adapts. This approach not only protects revenue and reduces exposure to disruption-driven costs but also enables growth by capturing new opportunities (see “Imperative in action 6”). How to build strategic resilience: –Quantify the return on resilience (ROR): Apply a “value-at-risk” lens to preparedness – showing that every dollar invested in optional capacity prevents multiple dollars in losses. An ROR metric helps make resilience investments tangible by measuring avoided costs and operational losses during past disruptions and by simulating the financial impact of potential future shocks (see “Imperative in action 7”). –Codify playbooks: Develop scenario-driven and trigger-based operating plans that define when to switch suppliers, redirect inventory or redesign products. A pre-planned framework provides the clarity needed to respond decisively, maintain production and serve global customers through any disruption, protecting existing revenue streams and safeguarding reputation. –Transform data into growth opportunity: Use the same data and analytics that detect disruption to uncover unfulfilled demand, supply arbitrage in raw inputs and materials or new markets. By analysing internal signals such as inventory levels and supplier interaction data, alongside external signals like trade flows and commodity pricing, companies can surface growth opportunities early, make faster decisions and strengthen competitiveness across all conditions (see “Imperative in action 8”). Resilience is not a cost centre; it is a growth engine. When designed correctly, it converts foresight into financial performance.Imperativ e3 of leaders see resilience as driving growth, not managing risk.74% Turning water scarcity into a growth opportunity OCP turned a critical water constraint into opportunity – investing early in desalination and water recycling to decouple production from freshwater limits. What began as risk mitigation evolved into OGW-OCP Green Water, a new subsidiary enabling water autonomy for OCP’s sites, while providing clean water to nearby cities and supporting agriculture. Quantifying the payoff of resilience investments Cisco’s end-to-end supply chain risk management framework prioritizes mitigation efforts based on revenue impact and exposure to geopolitical, cyber and continuity risks. The framework evaluates six categories of risk with over 25 subcategories, using data-driven analysis to identify and address the most critical vulnerabilities. Its guiding principle is to mitigate vulnerabilities proactively and ensure continuity of supply to meet committed recovery times and avoid operational losses during disruptions. This approach positions risk management as a strategic value-protection function that informs annual planning and investment decisions.14 IMPERATIVE IN ACTION 6 IMPERATIVE IN ACTION 7 Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility 15