Risk Management A changing framework

Value of Tangible assets

Value of Intangible assets

1970s

Production based
economy
Mainly
National/Local
Founded on Plant,
Labour etc

Knowledge
Reputation
Management
Image
Traditional
Asset
Protection
2000+

Knowledge based
economy

Example

PEST model

Technical

Economic

IT/Systems Breakdown
Contamination
Industrial Accident

Industrial Accidents
Government Crisis
Utilities failure

On-site product tampering

Malicious acts
Organisational failure

Sabotage
Terrorism
Labour strikes
Off-site product tampering

People

Social

The impact on shareholder value

After initial reflex (10 days),
market begins to assess
companys response.

Effective crisis response

Ineffective crisis responses

25

50

75

100

125

150

175

200

225

Trading days after the event

Source: The Impact of Catastrophes on Shareholder Value, Rory F. Knight & Deborah J. Pretty, Templeton College, University of Oxford, p. 3.

Source: The Impact of Catastrophes on Shareholder Value, Rory F. Knight & Deborah J. Pretty,
Templeton College, University of Oxford

250

Building a secure business is not just

about supply and demand. It is about
the protection and prevention
measures that you can put in place
against crime, the consequences of a
natural disaster, electronic attack,
acts of terrorism and other events
that would have a negative impact on
your organisation
Rt Hon Hazel Blears MP.

Secretary of State
Secure in the Knowledge (2005)

Fire

Hackers

Flood

Power

Terrorism

IT

The Business Continuity Institute 2001

Fully tested
effective BCM

A
Level of business

B
No BCM lucky
escape

Time

Critical
recovery point

No BCM
usual outcome

Understanding
Your Business

1
Exercising,
Maintenance
and Audit

BCM

Business
Continuity
Strategies
Managem

Programme
Management

4
Building &
Embedding a
BCM Culture

3
Develop and
Implement BCM
Plans & Solution(s)

Business Continuity Institute 2002