Business Interruption for an organization that has suffered a direct property loss, failure of the supply chain or any other adverse conditions is far from an emerging risk. It is, rather, a latent risk that emerges regularly in the wake of large-scale events that have world-wide ramifications; natural disasters, nuclear events or even pandemics.
We find it hard to imagine a large-scale disaster and to even consider the possible long-term fallout. We tend towards short memories and, above all, staying well within our comfort zones, as illusory as they may be. Wisdom and common sense are thrown to the wind. We are, in fact, quite happy living on top of a ticking time bomb.
An adequate contingency response prepared way in advance is paramount for any organization that wishes to survive an event of such magnitude. Identifying potential scenarios and fully understanding vulnerabilities is vital for success.
Once an organization has managed to contain most of its risks, the residual risk can then be transferred to the insurance or financial market. Sophisticated risk transfer solutions do exist but they are, more often than not, poorly understood and/or needlessly complicated.
This book is all about giving comprehensive explanations of the concepts underpinning Business Interruption and other related topics as well as the mechanisms and limits of insurance solutions.
Above all, this book highlights the absolute need for (and advantages of) a proper and practical Risk Management policy.