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THE BUSINESS CASE FOR PREPAREDNESS: Balance Sheet
Assets Impact: The value of tangible assets including inventories, property, plant and equipment are protected as a result of preparedness efforts. Intangible assets including know-how and goodwill are generally increased through investment in preparedness.
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Liabilities Impact: Certain liabilities are often minimized as a result of preparedness and thereby allow for larger shareholders equity. For example, provisions for litigation, damaged inventory, asset impairment, environmental claims, dismantling provisions, and employee benefits can be significantly reduced or avoided completely where preparedness has mitigated the impact of an event.
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Financial Impacts of Corporate Preparedness