Provisions - a solution for business resilience in times of crisis

The aim of the research is to analyse how provisions contribute to business resilience in crisis conditions. In order to achieve the proposed goal, we collected economic and financial data of the best performing entities in the Romanian energy industry over the period 2012-2022, thus building a sample of 34 companies. In this context, a multiple linear regression model was used to estimate the value of the prevention index. The results of the research demonstrate that the implementation of provisions is an essential adaptation tactic for energy producers in the face of crises caused by pandemics, military conflicts and the quest for energy independence. Predictability of provisioning is essential for accurate risk assessment and efficient allocation of resources to cover losses. The originality of the research lies in the development of a predictability index, which highlights the importance of establishing and using provisions in managing risks and maintaining financial stability for energy companies. Moreover, this index can be extended to other sectors, not just energy.