firmre

Firmre is a framework for evaluating firm-level resilience to shocks. It integrates financial stability, supply chain robustness, and operational/digital resilience into a single composite score. The concept is used in risk management and strategic planning to identify vulnerabilities and prioritize investments in redundancy and recovery capabilities.

The term emerged in scholarly and industry discussions in the 2010s as disruptions from financial crises and supply chain shocks highlighted the need for standardized resilience metrics. It is not tied to a single standard and is implemented differently across organizations.

The framework uses three pillars: financial stability (liquidity, debt maturity, earnings volatility), supply chain robustness (supplier concentration, geographic diversification, inventory policies), and operational/digital resilience (IT redundancy, cyber readiness, disaster recovery capabilities).

Firms compute a composite Firmre score by normalizing each pillar and applying weights. The score helps benchmark performance over time or against peers. Qualitative assessments complement quantitative data.

Applications include use by risk managers, strategic planners, and regulators in some jurisdictions to guide capital allocation, supplier risk management, and continuity planning.

Limitations and criticisms include dependence on chosen weights, data reliability, and industry context. Small firms may lack data to compute scores, and cross-country comparability may be limited.

Related concepts include business continuity planning and resilience engineering.