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THE BUSINESS CASE FOR PREPAREDNESS: Liabilities
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.
- Cost Growth and Inventory Levels
May 24, 2008
Supply chain glitches lower sales growth (-6.92%), increase growth in costs (+10.66%), and result in a high growth in inventories (+13. 88%). Furthermore, these negative effects linger.
Continue reading » - IT Downtime Results in Substantial Costs
May 23, 2008
Medium-sized businesses lose nearly $1 million annually in network downtime.
Continue reading » - Minimizing Costs Due to IT Attacks
May 23, 2008
There are increasing attacks on the IT systems of financial institutions with many resulting in financial loss.
Continue reading » - Minimizing Costs Due to IT Downtime
May 23, 2008
The loss of important business data can result in significant losses in terms of both existing and future business as well as liabilities to customers, investors and legal authorities. IT downtime costs can range from $1 million to over $6 million annually.
Continue reading » - Minimizing Liabilities to Customers, Investors and Legal Authorities
May 23, 2008
The loss of important business data can result in significant losses in terms of both existing and future business as well as liabilities to customers, investors and legal authorities. IT downtime costs can range from $1 million to over $6 million annually.
Continue reading » - Impacting Borrowing Costs / Debt Service
May 23, 2008
Corporations risk substantial legal liability if they do put in place appropriate emergency preparedness programs.
Continue reading » - Lowering Litigator Costs
May 23, 2008
"Corporations are vulnerable to significant legal liability if they do not undertake emergency preparedness efforts. This liability can result from several sources including common law negligence, specific legislation/regulations and contractual obligations."
Continue reading » - Impacting Insurance
May 23, 2008
When made known to insurance companies, a corporate preparedness program can result in relatively lower insurance premiums and better policy terms.
Continue reading » - Lowering Operating Expenses
May 23, 2008
When firms support government and NGO disaster efforts, they serve their own interests as well as the interests of the community by promoting economic resilience.
Continue reading » - Improving Financial Performance and Minimizing Losses
May 23, 2008
A Moody's survey found that one in five companies had suffered significant damage from a failure to manage risk over the past year and over half had at least one near miss.
Continue reading » - Resilience Can Minimize Legal Liability for Corportions, Directors and Officers
May 23, 2008
Risk management is an instrument that protects the ability of a firm to generate a positive return to its shareholders.
Continue reading » - Decreased Provisions for Litigation
October 10, 2006
Undertaking preparedness efforts, especially in conformance with an acknowledged standard for organizational preparedness such as NFPA 1600, may result in...
Continue reading »
Financial Impacts of Corporate Preparedness