How businesses prepare for disruption

MANILA, Philippines — Rising costs, changing consumer habits, supply-chain interruptions and extreme weather are testing how Philippine businesses operate.

While companies cannot predict every disruption, they can prepare by managing their finances carefully, understanding their risks and making investment decisions with the long term in mind.

For SM Investments Corp., the parent company of the SM Group, resilience means building businesses that can withstand difficult periods without losing the ability to invest for the future.

“Financial discipline gives businesses room to respond when conditions change,” said Erwin Pato, executive vice president for Finance, Treasury and Planning at SM Investments. “A strong balance sheet, healthy cash flows and careful investment decisions allow us to manage risks while continuing to pursue opportunities for long-term growth.”

SM’s business structure supports this approach. Its core businesses in retail, banking and property serve different but related needs. Retail provides everyday goods, banking supports households and enterprises, while property develops places where people shop, live and work.

Each business has its own management, financial resources and growth plans. Their ability to fund their own expansion allows SM Investments, as the parent company, to benefit from their growth and the dividends they generate without having to finance all that expansion itself.

This gives SM Investments greater flexibility when economic conditions change. While each business faces its own risks, their different sources of earnings help reduce the Group’s dependence on any single sector.

“Businesses cannot control every change in the market,” Pato said. “What they can control is how well they manage their resources, assess risks and prepare for different conditions.”

Financial strength, however, is only part of resilience. In a country exposed to typhoons, flooding and earthquakes, businesses must also consider how physical risks could affect their operations.

SM Engineering Design and Development Corp. (SMEDD) helps plan, design and engineer SM developments with attention to the environmental, geological and operational conditions of each location.

“Resilience begins long before a building opens,” said architect Fides Hsu, SMEDD’s chief design architect. “It means understanding the risks at a particular location and taking them into account in how developments are planned, designed and built.”

These decisions affect more than safety. Developments designed with local risks in mind are better placed to withstand disruptions and resume operations.

The same thinking applies to how businesses use energy and materials and manage waste. Improving efficiency can help manage operating costs, reduce dependence on resources and make businesses less vulnerable to disruptions.

For SM, sustainability is part of how businesses manage risks and improve operations, rather than a separate undertaking.

Preparing for the future also means investing in businesses that address the country’s long-term needs.

Through Philippine Geothermal Production Company (PGPC), SM has invested in geothermal energy, a renewable source of baseload power. PGPC’s steam fields in Mak-Ban and Tiwi support approximately 400 megawatts of generating capacity, contributing to the country’s need for reliable electricity.

In logistics, SM’s investment in 2GO provides a presence in the movement of goods and people across the Philippines, where dependable transport remains essential to businesses and consumers.

These investments serve different markets, but both address needs that will remain important as the economy develops.

The aim is not to expand for the sake of expansion. It is to invest in areas with lasting demand while allowing each business to develop its own capabilities and opportunities.

Across the Group, experience in financial management, operational planning, risk assessment and resource efficiency can also be shared where relevant. The businesses remain independently managed, but lessons learned in one can help another address similar challenges.

No company can predict the next disruption, whether it comes from the economy, the climate or changes in consumer behavior. What it can do is prepare.

For SM Investments, that means maintaining financial discipline, strengthening the businesses it owns and investing in areas that meet the country’s long-term needs.

The objective is not to avoid every setback, but to remain strong enough to manage one and continue growing beyond it.

abtestabtest Weak peso pushes NG debt to record P19.66 trillion By Aubrey Rose Inosante | 1 day ago The country’s outstanding debt ballooned to another record high of P19.66 trillion as of end-September, due to issuance... Business Trade gap widens to $5.15 billion in September By Louella Desiderio | 1 day ago The country’s trade deficit widened in September despite record exports earnings and fastest growth in over five years,... Business Telco eyes connectivity integration in property development masterplans 1 day ago One of the country’s major telecommunications firms is pushing for the early integration of telecommunications infrastructure... Business The scariest things are not in costumes By Francis J. Kong | 1 day ago Halloween. Children dress as ghosts, witches, vampires and assorted creatures that would make any respectable homeowner hesitate before opening the door. Shopping malls display cobwebs, skeletons and pumpkins. Even... Business DALI’s P7 billion loss puts hard discount store model in focus By Elijah Felice Rosales | 2 days ago The pioneer of hard discount stores in the Philippines  incurred more than P7 billion in losses as of 2025, raising doubts... Business Latest More in Business ‘Weak peso to hike costs of imported farm goods’ Banks see stronger loan demand in Q4 Cement makers expect flat growth this year Economists see more interest rate hikes as inflation risks persist abtest The timeless craft of a wooden kuna By Jasper Emmanuel Arcalas | 25 minutes ago Kuna. Business What will they say at your grave? By Francis J. Kong | 25 minutes ago The comedian Spike Milligan spent years joking that he wanted “I told you I was ill” carved on his tombstone. Business Canadian firm eyes RE investments in Philippines – Go By Louella Desiderio | 25 minutes ago Canadian investment firm Brookfield Corp. is planning to expand investments in the Philippines’ renewable energy&n... Business UnionBank seeks BSP capital relief for digital bank integration By Keisha Ta-Asan | 25 minutes ago Union Bank of the Philippines is seeking exemptions from certain capital requirements as it moves to integrate its digital... Business Recommended BBM-Sara, isang alamat ng masangsang na pagsasama October 30, 2026 - 12:00am NAGING isang alamat ang pagkamatay ni Ninoy Aquino noong 1983 sa tarmac na  humantong sa  puwersahang pagpapatalsik kay FM Sr. at pag-upo ni Pres. Cory Aquino noong 1986. Sinuportahan noon ng Simbahang...r BusinessSARA DUTERTE SC: Senado at Kamara, pinagkokomento sa binagong voting threshold sa VP Sara trial 2 days ago Binigyan ng Korte Suprema ang Senado at Kamara de Representantes ng hindi mapapalawig na limang araw upang mag­hain ng... BusinessSARA DUTERTE 91 testigo ni VP Sara, gigisahin sa ‘unexplained wealth’ 4 days ago Nakatakdang i-cross examine ng prosecution team ang 91 testigo na ihaharap ng defense team ni Vice President Sara Duterte... BusinessSARA DUTERTE­ Sen. Alan: Walang senator-judge ang dapat pumalit kay VP Sara October 27, 2026 - 12:00am Nanawagan si ­Senate Minority Leader Alan Peter Cayetano sa kapwa niya senator-judges na magdeklara sila sa publiko na hindi nila tatanggapin ang posisyon na maging bise presidente kung sakali na si Vice President...r BusinessSARA DUTERTE Mister ni VP Duterte, ang complainant sa kasong cyber libel vs Lustre   October 27, 2026 - 12:00am Kinumpirma kahapon ng abogado ni Philip Lustre Jr., na si Atty. Dino de Leon na si Atty. Manases “Mans” Carpio, na mister ni Vice President Sara Duterte, ang naghain ng kasong cyber libel matapos nilang...r BusinessCYBER LIBEL next Recommended BBM-Sara, isang alamat ng masangsang na pagsasama NAGING isang alamat ang pagkamatay ni Ninoy Aquino noong 1983 sa tarmac na  humantong sa  puwersahang pagpapatalsik kay FM Sr. at pag-upo ni Pres. Cory Aquino noong 1986. Sinuportahan noon ng Simbahang Katoliko si Cory at sumibol ang alamat ng EDSA! 2 days ago SARA DUTERTE SC: Senado at Kamara, pinagkokomento sa binagong voting threshold sa VP Sara trial Binigyan ng Korte Suprema ang Senado at Kamara de Representantes ng hindi mapapalawig na limang araw upang mag­hain ng kani-kanilang komento sa petisyon nina Senators Robin Padilla at Bong Go na humihiling na ideklarang “null” ang ruling sa voting threshold para sa conviction ni Vice President Sara Duterte. 2 days ago SARA DUTERTE 91 testigo ni VP Sara, gigisahin sa ‘unexplained wealth’ Nakatakdang i-cross examine ng prosecution team ang 91 testigo na ihaharap ng defense team ni Vice President Sara Duterte kaugnay ng kaso ng P817.87 milyong “unexplained wealth” o hindi maipaliwanag na paglobo ng kayamanan nito sa pagpapatuloy ng paglilitis sa Senate impeachment court. 4 days ago SARA DUTERTE­ Sen. Alan: Walang senator-judge ang dapat pumalit kay VP Sara Nanawagan si ­Senate Minority Leader Alan Peter Cayetano sa kapwa niya senator-judges na magdeklara sila sa publiko na hindi nila tatanggapin ang posisyon na maging bise presidente kung sakali na si Vice President Sara Duterte ay ma-convict at matanggal sa puwesto upang maiwasan ang conflict of interest sa mga pag­lilitis sa impeachment. 5 days ago SARA DUTERTE Mister ni VP Duterte, ang complainant sa kasong cyber libel vs Lustre   Kinumpirma kahapon ng abogado ni Philip Lustre Jr., na si Atty. Dino de Leon na si Atty. Manases “Mans” Carpio, na mister ni Vice President Sara Duterte, ang naghain ng kasong cyber libel matapos nilang makuha ang kopya ng impormasyon mula sa Davao City Regional Trial Court. 5 days ago CYBER LIBEL OK Are you sure you want to log out? Yes No X Login Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!