FM Global Study Reveals Most Large Companies Unprepared for to Natural Disasters
A new survey of financial executives representing the largest corporations in North America reveals almost all companies are exposed to natural disasters, yet many of those firms are not well-prepared for such catastrophes and are not overly concerned about the potential business impact.
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new survey of financial executives representing the largest corporations in North America reveals almost all companies are exposed to natural disasters, yet many of those firms are not well-prepared for such catastrophes and are not overly concerned about the potential business impact.
"The findings reveal a surprising and concerning gap between the levels of natural catastrophe exposure among North America's largest companies and their level of preparedness," says Ruud Bosman, executive vice president, FM Global, "Especially given that, in the first half of 2008, there were about 400 natural catastrophes worldwide with overall losses expected to top US$50 billion."
Among the findings, the study findings indicate a consistent disconnect across three of the most common and costly types of natural disasters: hurricanes, floods and earthquakes.
Hurricanes:
• While 80 percent of companies have North America operations located in regions exposed to hurricanes, nearly 50 percent reported they are not well-prepared for a hurricane.
• Nearly 80 percent of financial executives from those companies are not overly concerned that a hurricane/typhoon or tropical cyclone could negatively impact their company's bottom line.
Floods:
• While 90 percent of companies have North America operations located in regions exposed to floods, more than 60 percent indicated they are not well-prepared for a flood.
• Almost 90 percent of financial executives from those companies are not overly concerned that a flood could negatively impact their company's bottom line.
Earthquakes:
• While more than 80 percent of companies have North America operations located in regions exposed to earthquakes, more than 70 percent revealed they are not well-prepared for an earthquake.
• Eighty-five percent of financial executives from those companies are not overly concerned that an earthquake could negatively impact their company's bottom line.
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