The dangers of not looking aheadBy

The dangers of not looking ahead
By Andrew Bolger



Risk management has undoubtedly moved up the corporate agenda in recent years with fears of war and terrorism being added to the usual list of business worries.
Shivan Subramaniam, the Chairman and Chief Executive of FM Global, a commercial and industrial property insurer, says: ‘Corporations are operating in a turbulent world where businesses are seeking growth through globalisation, outsourcing, consolidation, just-in-time delivery and cross-border supply, further increasing their potential exposure to risk. ’
‘Add regulatory, legal and labour considerations, and you begin to understand the complex nature of business risk in the 21st century. While acts of terrorism receive the most coverage, it’s the more traditional events such as fires, floods, explosions, power failures or natural disasters that have the biggest impact. ’
FM Global believes the majority of all loss can be prevented or minimised and this should be the first part of any disaster recovery plan. It also argues that prevention is better than cure and says there is a lot companies can do to stop such events from becoming a disaster in the first place.
However, research shows that more than one-third of the world’s leading companies are not sufficiently prepared to protect their main revenue sources and have room for improvement.
Ken Davey, a managing director with FM Global, says: ‘To best protect cash flow, competitive position and profit, companies need to assess the potential hazards that can impact top revenue sources and make sure there is business continuity planning. ’
Lord Levene, chairman of the Lloyd’s insurance market, said recently that companies must be prepared for business interruptions, which accounted for 25 per cent of the $40bn lost as a result of the September 11 terrorist attacks. It was estimated that 90 per cent of medium to large companies that could not resume near-normal operations within five days of an emergency would go out of business.
‘Looking ahead 10 years I firmly believe that the most successful, least crisis-prone businesses will be those whose boards have shown firm resolve and taken decisive action,’ Lord Levene said. ‘Effective, integrated strategies for dealing with tomorrow’s risks require a change in culture at board level now. ’
A new research report from Marsh, the world's biggest insurance broker, found that half of European companies did not know how to manage the most significant risks to their business.
Most of Europe’s senior executives surveyed admitted that they did not have procedures in place to manage properly operational and strategic risks, which were responsible for most company failures in the twenty-first century.
The survey found that the three most significant risks, and those that businesses felt least able to manage, were:
• Increased competition
• Adverse changes in customer demand
• Reduced productivity because of staff absenteeism and turnover.
‘While business leaders are aware that these risks are the most threatening to their future survival and growth they are scratching their heads when it comes to protecting their businesses against them,’ says Neil Irwin, European development
director of Marsh’s corporate client practice. ‘Management processes could easily help companies identify and address these risks. Instead, too many companies take a low-level approach to risk management preferring to focus on easy-to-solve risks, such as asset protection and health and safety. ’
Mr Irwin says: ‘Risk is dynamic, it changes with the environment.

Результаты (украинский) 1:

Небезпеки не дивиться впередЗа Ендрю BolgerУправління ризиками безсумнівно переїхала до корпоративного порядку денного в останні роки з страхи з війною і тероризмом додається до звичайного списку бізнес турбот. Shivan Субраманьям, голова і виконавчий директор FM Global, комерційних і промислових власності страховика, каже: "корпорації працюють у бурхливі світу, де підприємства шукають зростання через глобалізації, аутсорсинг, консолідації, точно в строк доставки та транскордонних постачання, подальше збільшення їх потенціалу наражається на ризик. ’ ' Додати нормативно-правових та трудових міркування, і починаєш розуміти комплексний характер бізнес-ризиків в 21 столітті. Хоча акти тероризму отримувати більшості охоплення, як більш традиційні події, такі як пожежі, повені, вибухів, потужності збої або стихійні лиха, які мають найбільший вплив. ’Глобальний FM вважає, що більшість всі втрати можуть бути запобігти або зведена до мінімуму, і це має бути першу частину будь-який план аварійного відновлення даних. Він також стверджує, що попередження краще запобігти, ніж лікувати і каже, що існує багато компаній можуть зробити, щоб зупинити такі події стати катастрофою в першу чергу. Однак, дослідження показує, що більш ніж одну третину провідні компанії не мають достатньо підготовлені, щоб захистити їх основний дохід джерел і є місце для вдосконалення. Ken Davey, a managing director with FM Global, says: ‘To best protect cash flow, competitive position and profit, companies need to assess the potential hazards that can impact top revenue sources and make sure there is business continuity planning. ’Lord Levene, chairman of the Lloyd’s insurance market, said recently that companies must be prepared for business interruptions, which accounted for 25 per cent of the $40bn lost as a result of the September 11 terrorist attacks. It was estimated that 90 per cent of medium to large companies that could not resume near-normal operations within five days of an emergency would go out of business. ‘Looking ahead 10 years I firmly believe that the most successful, least crisis-prone businesses will be those whose boards have shown firm resolve and taken decisive action,’ Lord Levene said. ‘Effective, integrated strategies for dealing with tomorrow’s risks require a change in culture at board level now. ’A new research report from Marsh, the world's biggest insurance broker, found that half of European companies did not know how to manage the most significant risks to their business. Most of Europe’s senior executives surveyed admitted that they did not have procedures in place to manage properly operational and strategic risks, which were responsible for most company failures in the twenty-first century. The survey found that the three most significant risks, and those that businesses felt least able to manage, were:• Increased competition• Adverse changes in customer demand• Reduced productivity because of staff absenteeism and turnover. ‘While business leaders are aware that these risks are the most threatening to their future survival and growth they are scratching their heads when it comes to protecting their businesses against them,’ says Neil Irwin, European developmentdirector of Marsh’s corporate client practice. ‘Management processes could easily help companies identify and address these risks. Instead, too many companies take a low-level approach to risk management preferring to focus on easy-to-solve risks, such as asset protection and health and safety. ’Mr Irwin says: ‘Risk is dynamic, it changes with the environment.

Результаты (украинский) 3:

Про небезпеку, пов'язану з ні заглядаючи уперед
Ендрю Bolger



ризик-менеджменту має безумовно переїхала до порядку денному компаній за останні роки з побоювання щодо війни та терору до звичайного списку занепокоєння бізнес.
Shivan перебувала, голова і головний виконавчий директор FM-Global, комерційної та промислової нерухомості страховика, говорить:'Корпорацій світу, в якому діють у неспокійні бізнесу прагнуть зростання через глобалізації, аутсорсинг, консолідація, просто-в-час доставки та транскордонні, подальше збільшуючи свої потенційні ризики. '
'Додати нормативно-правових та праці міркувань, і починаєш розуміти комплексний характер бізнес-ризиків у 21-му столітті.Під час терактів отримати найбільш покриття, це більш традиційним події, такі як загорянь, повеней, вибухи, збої або стихійних лих, які мають найбільший вплив. '
FM-глобального вважає, що більшість втрати можна запобігти або мінімізація і це повинно бути першої частини будь-якого катастрофи плану відновлення.