Earlier quoted context omitted.
If you are a corporate entity of some kind, the final layer of your plan should always be "Go bankrupt". You can't successfully recover from every possible disaster and you shouldn't try to. In the event of a sufficiently unlikely event, your business fails and every penny spent attempting the impossible will be wasted, move on and let professional administrators salvage what they can for your creditors. Lots of peop…
"Go bankrupt" is not a plan. Becoming insolvent might be the end result of a situation but it's not going to help you deal with it. Let's take an example which might lead to bankruptcy. A typical answer to a major disaster (let's say your main and sole building burning as a typical case) for an SME would be to cease activity, furlough employes and stop or defer every payments you can while you claim insurance and ass…
Yes it is. (Though it's better, as GP suggested, as a final layer of a plan and not the only layer.)
> Becoming insolvent might be the end result of a situation but it's not going to help you deal with it.
Insolvency isn't bankruptcy. Becoming insolvent is a consequence, sure. Bankruptcy absolutely does help you deal with that impact, that's rather the point of it.