Why Financial Resiliency is Far More Important Than Financial Sustainability

If the pandemic, financial crisis of 2008, 9/11, or the UK imposition of VAT taxes on private school enrollment have taught us anything, we should have learned that our world is highly fragile and volatile. In fact, volatility is predictable – think about that for a moment. The world changes on a dime and industry must react.

In today’s rapidly changing world, financial resiliency is far more critical than financial sustainability. While sustainability focuses on maintaining steady financial health, resiliency equips organizations to weather unforeseen challenges—whether they be economic downturns, technological disruptions, or global crises. Resilient organizations adapt quickly, pivot strategies, and manage risks, ensuring they can not only survive but thrive in uncertainty. As shifts in markets, regulations, and societal needs become more frequent, building financial resiliency is key to long-term success, allowing institutions to stay agile and prepared for whatever the future brings.

Try substituting not just the word, but the concept, of financial resiliency — instead of financial sustainability — in your future board and executive team conversations.  If is a far more adaptable way to plan for the future.