Resources / Research & evidence

Understand the evidence behind the approach.

Decades of research explain how external shocks reach firms, spread through value chains, and challenge managerial decisions. This is the foundation for CrisisFlow's design. Explore the findings, their practical relevance, and their limits.

What the research contributes

What the findings change for a decision.

These findings inform how CrisisFlow connects an external event to a company's choices. The guide explains the supporting evidence, its scope, and where judgment is needed.

Exposure is specific to the firm

Research on political risk finds substantial differences between firms that aggregate country or industry indicators do not capture.

Implication for the decision Use hazard-family, site, and company views to connect a hazard to the operations and commitments that matter. Keep gaps in coverage visible.

Disruption travels through value chains

Studies of natural disasters show effects reaching direct and indirect suppliers and customers. Specific inputs and substitution difficulty can amplify propagation.

Implication for the decision Trace internal and external dependencies to the agreed tier. A mapped supplier is useful when the manager can see what depends on it and whether a substitute is feasible.

An urgent signal still needs context

Research on firms near natural disasters shows how a salient event can shift managers’ concern and financial decisions, even outside the directly affected area.

Implication for the decision Separate the alert from its consequences for the business. Make verified information, assumptions, and projected impacts distinguishable before committing resources.

The right response depends on operating constraints

Analytical and applied research shows why mitigation and contingency choices depend on capacity, flexibility, disruption duration, and business consequences.

Implication for the decision Compare feasible response portfolios against continuity, cost, and recovery goals. As conditions change, account for actions already underway before choosing the next response.

Learning requires interpretation of experience

Rare disruptions provide limited opportunities to learn. Research shows that how organizations interpret experience matters, and that success and failure can lead to different lessons.

Implication for the decision Preserve what was expected when a decision was made. Compare it with what happened, then test whether a proposed preparation measure improves continuity enough to justify its cost.

Interpreting the measures

Different measures answer different questions.

Read a value alongside its meaning, scope, and assumptions. The interactive case makes the following distinctions.

Risk index
A comparative signal to prioritize review by hazard family and site. It is not an event probability or a financial-loss estimate. Missing coverage is not zero risk.
Financial impact
Response spending and the operating consequences included in the scenario. Delayed revenue is not automatically lost revenue. The case distinguishes response cost, penalties, canceled-order margin loss, and catch-up cost.
Continuity and recovery
Customer service, restored production, and cleared outstanding orders are distinct milestones. Compare how a response affects each one.
Forecast and outcome
A revised projection uses new information. An observed outcome records what actually happened. The interactive case applies these distinctions to a historical disruption and a fictional company.
Learning
Compare the earlier expectation with the decision and outcome. Test a preparation measure under comparable conditions, including its cost, and distinguish modeled improvements from realized savings.

Evidence and oversight

Make the basis of a decision reviewable.

The source of an event, a company's operating information, and a model's projection play different roles. A manager needs to see which is which.

  1. Establish what is known

    Identify the source, date, coverage, and relevance of the information. Record gaps and conflicting evidence.

  2. State what is assumed

    Make the operating assumptions and material constraints explicit. Identify what new information would change the choice.

  3. Record the decision

    Preserve the chosen response, rationale, responsible people, and required authorization. A recommendation is not permission to act.

  4. Review what changed

    Retain earlier expectations as new information arrives. Distinguish a changed forecast from execution and an observed outcome.

The guide includes an annotated evidence-to-decision example and the questions operations, finance, and governance teams should ask.

Evaluating performance

Measure results against the company's decision.

Evaluate CrisisFlow against the decisions and outcomes that matter to your company, including business continuity, response cost, and recovery.

Agree on the operating decision, required information, and comparison with the existing process. Assess time to understand exposure, whether actions are feasible, and the consequences for continuity, cost, and recovery. Compare observed outcomes with the original expectations, accounting for changes in conditions.

Start with one operating decision →

Your next step

Examine the evidence in context.

The guide explains what the evidence supports, where its limits matter, and how to assess a decision. Supporting references are included for further review.