Weather, Accidents & Faulty Equipment Can Ruin Your Business, RiskCentric Survey Finds
Cambridge, United Kingdom, April 14, 2011 --(PR.com)-- In their quarterly survey of business disruptions due to be published this week, UK based compliance, risk and business continuity advisors RiskCentric identify extreme weather conditions, human error and faulty equipment as the most likely reason for an organisation to find itself unable to operate “business as usual.”
Faulty electrical equipment, for instance, is a common cause of fires, and most IT systems failures are caused by hardware malfunction, while the root cause of the majority of Hazardous Chemical incidents are due to handling and storage accidents.
The weather, a subject all like to discuss in the UK, remains the most significant source of business disruption because of its ability to create widespread multiple disruptions to infrastructure. Follow up analysis shows that several businesses have actually ceased to exist because of incidents like these and underlines the need for organisations to ensure that they are prepared for the unexpected.
RiskCentric’s interruption database is continuously updated and reported on quarterly in the free newsletter, Thin Ice which is available on a subscription basis by registering at the company’s website www.riskcentric.co.uk.
RiskCentric Managing Partner, Steve Dance pointed out that although “iconic” events such as those currently affecting Japan and “9/11” tend to receive major media coverage and are often used as wake-up calls by government and trade bodies, there are many day-to-day incidents that are occurring on a local level that can cause serious issues for commercial organisations. Although complete company failure is uncommon, many organisations are badly affected by the effects of a major incident. He added “The main reason for this is not the immediate financial consequences associated with damage restoration, it’s the long term damage that is done to customer relationships that causes the real difficulties. Once the goodwill of a customer is lost, it may never be regained if the customer has defected to a competitor and sees no reason to switch back."
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Faulty electrical equipment, for instance, is a common cause of fires, and most IT systems failures are caused by hardware malfunction, while the root cause of the majority of Hazardous Chemical incidents are due to handling and storage accidents.
The weather, a subject all like to discuss in the UK, remains the most significant source of business disruption because of its ability to create widespread multiple disruptions to infrastructure. Follow up analysis shows that several businesses have actually ceased to exist because of incidents like these and underlines the need for organisations to ensure that they are prepared for the unexpected.
RiskCentric’s interruption database is continuously updated and reported on quarterly in the free newsletter, Thin Ice which is available on a subscription basis by registering at the company’s website www.riskcentric.co.uk.
RiskCentric Managing Partner, Steve Dance pointed out that although “iconic” events such as those currently affecting Japan and “9/11” tend to receive major media coverage and are often used as wake-up calls by government and trade bodies, there are many day-to-day incidents that are occurring on a local level that can cause serious issues for commercial organisations. Although complete company failure is uncommon, many organisations are badly affected by the effects of a major incident. He added “The main reason for this is not the immediate financial consequences associated with damage restoration, it’s the long term damage that is done to customer relationships that causes the real difficulties. Once the goodwill of a customer is lost, it may never be regained if the customer has defected to a competitor and sees no reason to switch back."
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RiskCentric
Steve Dance
+ 44 (0)1945 772369
www.riskcentric.co.uk
Steve Dance
+ 44 (0)1945 772369
www.riskcentric.co.uk
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