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THE BUSINESS CASE FOR PREPAREDNESS: Expenses
Preparedness efforts can directly result in lower costs in a number of areas. These lower costs can create stream of savings across time which represent an additional return on preparedness investments. The primary return on preparedness for all businesses remains the assurance that the business can maintain its core operations through a crisis and return quickly to generating revenue.
- Relatively Mild Events Can Impact Employee Productivity, Building and Inventory Damage
May 24, 2008
A relatively mild earthquake can result in significant losses especially to small businesses including losses in revenue, distracted and absent employees, building damage and inventory damage.
Continue reading » - Business Interruption Lossess Due to Lower Impact But Frequent Events Can Be Substantial in Sum
May 24, 2008
Lower impact/non-catastrophic events (such as low intensity hurricanes) can be more frequent than high impact events and have cumulative business interruption impact equal to that of a high impact event (such as a high intensity hurricane).
Continue reading » - Resilience Can Be Critical When Insurance Only Covers Part of Loss
May 24, 2008
Economic losses due to hurricanes can be staggering. Insurance generally covers only a portion of the losses experienced by businesses and in some cases insurance coverage may not be triggered due to lack of physical damage.
Continue reading » - Resilience Can Dramatically Reduce Business Interruption Losses
May 24, 2008
The model-based simulation of a two week blackout in Los Angeles underscores the value of resilience with an 86 percent reduction in business interruption loss based upon adoptive resilience strategies.
Continue reading » - Impact on Financial Losses
May 24, 2008
Among the majority of global financial institutions, cyber attacks are increasing with many resulting in financial loss.
Continue reading » - Increased Effeiciencies, Cost Savings, Loss Avoidance, Lower Cost of Borrowing, Less Regulatory Charges and Lower Capital Requirements
May 24, 2008
Increasingly the financial services industry has taken a strategic approach to corporate resilience and security, integrating it into all significant business decisions. The result has been competitive benefits including, increased efficiencies, cost savings, loss avoidance, productivity enhancements, reputation protection, regulatory compliance, and direct revenue opportunities.
Continue reading » - Impacts on Credit Rating and Resulting Cost of Borrowing
May 24, 2008
For large international banks, the capital charge for operational risk will often exceed the charge for market risk.
Continue reading » - Impacts on Physical Costs and Losses Due to Downtime and Wages
May 24, 2008
Supply chain disruption events can have significant physical costs (e.g. damage to facilities, inventory, electronic networks, infrastructure) and subsequent losses due to downtime, wages for employees who cannot work and loss of customer goodwill. Significant declines in sales growth, stock returns and shareholder wealth can be expected for two or more years following the event.
Continue reading » - Resilient Supply Chain Management Yields Cost Savings Through Better Forecasting, Smoother Operations, Downsized Warehousing, and Lower Administrative Overhead
May 24, 2008
Resilience strategies not only work in maintaining business continuity but can yield cost savings through better forecasting, smoother operations, downsized warehousing and lower administrative overhead.
Continue reading » - Lower Costs
May 24, 2008
Higher supply chain security can be achieved at lower cost by proper management and operational design.
Continue reading » - Impacting Costs and Operating Income
May 23, 2008
Supply chain disruptions have substantial impacts on firms including 33 to 40% lower stock returns relative to their benchmarks, 13.5% increase in share price volatility, 107% drop in operating income, 7% lower sales growth, and 11% increase in costs.
Continue reading » - Minimizing Costs of IT Down Time
May 23, 2008
European businesses lose an average of £300,000 per hour to IT downtime.
Continue reading » - Downtime Costs Can Be Substantial
May 23, 2008
Global Switch has released findings from a pan-European survey, revealing that IT downtime costs European businesses on average £300,000 per hour.
Continue reading » - Effective Enterprise Risk Management and Security Can Lower Costs
May 23, 2008
Corporate resilience is a contributor to profitability, shareholder value and competitiveness.
Continue reading » - Lower Legal Costs
January 1, 2006
Corporations are vulnerable to significant legal liability if they do not undertake emergency preparedness efforts. This liability can result from...
Continue reading » - Lower Insurance Costs
January 1, 2006
Having an effective corporate emergency preparedness program can result in relatively lower insurance costs and better policy terms for companies,...
Continue reading » - Lower Cost of Capital (Debt & Equity)
January 1, 2006
As businesses operating in an uncertain global environment face increasing operational risks, their capacity to manage these risks becomes an...
Continue reading » - Facilitated Regulatory and Corporate Governance Compliance
January 1, 2006
Both internal and external review of corporate compliance with appropriate regulatory and corporate governance requirements can be facilated through a...
Continue reading » - Increased Productivity
January 1, 2006
Improvements in productivity can result from a variety of activities inherent in the preparedness efforts. Corporate resiliency efforts can promote...
Continue reading »
Financial Impacts of Corporate Preparedness