Natural disaster risk can sneak up on you if you are not vigilant...Many companies that rely on supply chains don’t know if they have a US$10 million exposure with a supplier or a US$100 million exposure.
Johnston, RI (PRWEB) October 22, 2013
As the anniversary of Superstorm Sandy approaches, CEOs need to take natural disaster risk more seriously according to a newly released white paper “Prepare for the Expected: Achieving Business Resiliency in an Era of Severe Natural Disasters” from FM Global, one of the world’s largest business property insurers.
With insights from renowned business and academic experts about lessons learned since Sandy a year ago, the white paper pushes chief executives to recognize and address natural disaster risk to their infrastructure, business operations and global supply chains.
Outlined in the white paper are “Seven Costly Sins Committed by CEOs” as well as the short-term and long-term effects that natural disasters can have on businesses and on economies. It also highlights companies that have successfully faced and stood up to natural disasters through proper preparation and prevention.
According to the white paper, CEOs “otherwise tempt the possibility of long business disruptions, loss of market share, financial instability, customer dissatisfaction and severe reputational issues.”
“CEOs own risk for their organization, yet many only have a tenure of a few years,” said Tom Lawson, FM Global executive vice president. “However, a once-in-a-century event like Sandy has a 1 percent chance of occurring each year a chief executive serves. The colossal financial losses that can arise should make even a 1 percent threat a top-of-the-agenda item.”
To download a copy of “Prepare for the Expected: Achieving Business Resiliency in an Era of Severe Natural Disasters,” click here.
Established in 1835, FM Global is a US$5.5 billion mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management. Its client-owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every three FORTUNE 1000 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions combining property loss prevention with insurance protection. FM Global is rated A+ (Superior) by A.M. Best and AA (Very Strong) by Fitch.