What happens when a crisis arises that has never been planned for in a business model?
Most business managers find a crisis to be a perfect time to jump ship and leave the problems for someone else to solve. Why would they do anything different when that's typically been a viable option?
If equity exists, if there is intrinsic capital in play, then there is reason to not run from crisis. Unfortunately, during crisis, most analysts have no idea how to define equity value. Quantification of specific risk factors becomes near impossible when no one will take reponsibility for potential solutions.
Risk is defined by its quantified variables. Risk is minimized by controlling or removing the most threatening variables. Uncontrollable variables are the first that require removal.
