The term close call refers to a situation in which an event, usually negative or dangerous, has been narrowly avoided. In a variety of contexts, whether in everyday life, business or finance, a “close call” refers to a moment when a serious consequence has come very close, but by luck or quick decision, the worst has been avoided. The term is often used to underline the fragility or uncertainty of a situation, and the luck or skill that enabled it to be avoided.
In finance, a “close call” can be applied to a number of scenarios. For example, a company may come close to bankruptcy only to receive last-minute financing that saves it. A risky strategic decision can also represent a “close call” if it leads to positive results after almost failing. In investments, a “close call” could refer to a stock or asset whose value has fallen sharply, but then rebounded before the investor suffered a significant loss.
Close calls are often studied in the context of risk management, as they reveal vulnerabilities in financial systems or business models. Financial crises, such as that of 2008, have been marked by numerous “close calls”, where certain institutions have avoided bankruptcy thanks to government intervention or internal reorganization. The way in which companies or investors deal with these situations can strengthen them by making them realize the need for more prudent and resilient strategies.
In a macro-economic context, a “close call” can also involve a national economy that verges on recession before rebounding thanks to appropriate economic policies. For example, the COVID-19 pandemic triggered numerous “close calls” worldwide, with whole sectors of the economy narrowly avoiding collapse thanks to state aid or rapid corporate adjustment.
