May 20, 2003 by Canadian Underwriter
A new survey suggests only about half of corporations in various sectors in the U.K. feel prepared to deal with the consequences of a terrorist attack. Digital security company mi2g, along with the Association of Insurance and Risk Managers (AIRMIC), the U.K.’s Northwest Development Agency and the Asymmetric Threats Contingency Alliance, surveyed 40 key corporate decision makers on how they perceived their corporation’s ability to deal with a chemical, biological, radiological, nuclear or digital (CBRN-D) attack.
“Many decision makers are not planning to do anything about this issue because they feel that either 9/11 was a one-off or the government will step in immediately if a major incident takes place,” notes DK Matai, mi2g executive chairman. “Either way, the shareholders of the affected businesses will demand to know what plans were in place at the AGM (annual general meeting) in the event that workers’ compensation and business interruption induced liabilities damage operations and associated competitive advantage permanently.”
Of note to insurers, one-third of respondents were unaware or did not have proper insurance coverage for a CBRN-D disaster.
Other findings include that one-third of corporations do not have business continuity capability in case of a disaster or a person designated to handle disaster recovery. One-fifth do not have the capability to inform staff worldwide of a major disaster or locate key staff or critical assets are at any time, and one-third are not capable of mobilizing a back-up supplier for continuing their business processes.