According to a survey of 400 corporate insurance experts around the world conducted by Allianz Global Corporate & Specialty SE (AGCS), business interruption (BI) and supply chain, natural catastrophes and fire/explosion are the top risks for businesses in 2014.
The CEO of AGCS North America referenced Superstorm Sandy in 2012 as an example of an event that caused wind damage, power outages, and IT system failures that led to significant business interruptions.
Business interruption and supply chain losses account for around 50-70% of all insured property losses, as much as $26 billion a year according to the article. These interruptions are definitely negatively impacting the bottom line of companies.
To protect from potential natural or man-made disasters, businesses must develop thorough business continuity plans. With computing systems being tied into all aspects of a company’s operations and often essential for running a business in today’s world, the IT department needs to be actively involved in developing the business continuity plan to protect its IT infrastructure from failure.
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