Business Oversights on Natural Disasters

A new survey of financial executives representing the largest corporations in North America reveals that almost all companies are exposed to natural disasters, yet many of those firms are ill-prepared for such catastrophes. FM Global said the gap between levels of natural catastrophe exposure and levels of preparedness is concerning.   The 2008 Natural Disaster Business Risk Study found that while 96 percent of financial executives said their companies have operations exposed to hurricanes, floods and earthquakes, less than 20 percent indicated that their firms were very concerned about such disasters negatively affecting their bottom line. For example, while 80 percent of companies have North America operations located in hurricane-exposed regions, nearly 50 percent reported they are not well-prepared for a hurricane. Nearly 80 percent are not overly concerned that a hurricane/typhoon or tropical cyclone could negatively impact their company’s bottom line. FM Global said the findings suggest companies should also consider the impact a disaster could have on maintaining competitiveness, market share and corporate reputation. Check out I.I.I. facts and stats on U.S. catastrophes.

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