Structural Differences Between Avian Flu and Other Events

There's much discussion these days about how business should go about addressing avian flu, should a global pandemic break out. More often than not, business continuity planners continue to lump avian flu with a number of other events of mass disruption. I think, however, that avian flu should be approached differently. In fact the dynamics of avian flu are completely different than the dynamics of most other events, regardless of their impact. Consider the following illustration:



This chart shows that avian flu differentiates itself from an other type of event based upon two criteria: event duration (whereas other events can unfold in a moment or a day, allowing recovery to take place when the event is over, the duration of an event such as avian flu can continue for weeks or months; receovery cannot take place until after the event is over), and the way in which anxiety levels of people which are usually at their highest point during a more "traditional" event and gradually decrease over time will actually increase over time.

The chart is fairly self-explanatory. Take a look at it and make sure your planners understand this dynamic and calibrate their planning strategies accordingly.

Managing Business Risk

The Sourcing Innovation blog reports on a Business Continuity Planning presentation given by Francis Borromeo of Shell Oil Canada at a recent conference.

Business continuity planning and risk management does not have to be ridiculously expensive. The key is that you

1. have a business continuity plan with
2. prioritized risks and recovery plans that you can use to
3. manage the recovery process in order to
4. transition to business as usual in a manner that permits an
5. after action review to allow you to improve and thrive.

A business continuity plan not only provides a framework for the recovery of the critical business processes, but it allows you to safeguard your brand and reputation.

But it's probably last on your management priority list. After all, you only see a return when a major disruption or disaster happens. However, considering that Aberdeen recently found that your average international company experiences two significant disruptions per year, it is critical that you have one. So how do you get the support and resources you need to initiate one?

Read Michael Lamoureaux's post to find out.

Of all the noteworthy business blog posts reviewed this past week on the Political Calculations blog, this post was awarded the title "The Best Post of the Week, Anywhere!"

Impact of Global Warming on Financial Services

At a recent conference in Australia jointly hosted by The Insurance Ombudsman Service, Financial Industry Complaints Service, and the Banking and Financial Services Ombudsman, Bill Peck, General Manager Risk Management and Compliance for AON Australia, delivered a paper with an interesting PowerPoint presentation on Global Warming - Impact on Financial Services [pdf].

Risk Management Insures Against Terrorism

Representing business insurance policyholders throughout the construction, entertainment, manufacturing, real estate, retailing and transportation sectors of the economy, the Coalition to Insure Against Terrorism (CIAT) is seeking a long-term solution to make comprehensive terrorism risk insurance coverage available and affordable after the expiration of the Terrorism Risk Insurance Extension Act at the end of 2007.

On this organization's blog there's a link to a recent interview in which Terry Fleming, Director of Risk Management for Montgomery County Maryland as well as a member of the Board of Directors of the Risk and Insurance Management Society (RIMS), sat down with the hosts of The REIT Report podcast to discuss the current state of terrorism risk insurance in the United States.

The Real Estate Roundtable has links to testimony given recently to committees of Congress by Roundtable Chairman Christopher J. Nassetta on behalf of the Coalition to Insure Against Terrorism.

His testimony emphasized three points: that the market conditions necessitating creation of a federal terrorism reinsurance backstop in 2002 have not changed; that, as demonstrated in 14 other nations, there is a need for a long-term, public-private partnership with a role for the federal government; and that consumers of terrorism insurance stand ready to assist Congress in devising a workable, appropriate solution.

The Risk and Insurance Management Society has information about the upcoming 2006 Intergovernmental Forum on Risk Management: Case Studies of Effective Implementation in Ottawa, Canada on October 24-25, and the 2006 RMIA National Conference of the Risk Management Institute of Australasia scheduled for November 12-14 in Melbourne, Australia.