Business continuity planning is the answer
to disaster risk reduction among members of the private sector by addressing
the increasing trend in global economic losses, Margareta Wahlstrom from the
United Nations International Strategy for Disaster Reduction (UNISDR)
emphasized.
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| Photo courtesy of Wikipedia |
At a roundtable
discussion held in the Ateneo de Manila University last May 3, the UN Secretary
General’s Special Representative for Disaster Risk Reduction pointed out the need
for businesses to adopt a well-designed Business Continuity Plan (BCP) in order
to handle looming disasters which may render the economy cripple once hit.
In studies,
companies with prepared BCP and strong risk management protocols save 20 times more from property
damages compared to those with no existing plans, with 40% less volatility in earnings.
Wahlstrom also
said that $4-$7 is saved in response
for every $1 of investment in resilience/prevention plans, making BCP a
practical choice for businessmen.
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| Photo courtesy of Wikipedia |
Supply Chain Risk Management in
particular was highlighted by Dr. Takehiro Ono from the Asia Disaster Reduction
Center, citing the Great East Japan Earthquake and Tsunami of 2011 as an
example where 337 private companies nationwide went bankrupt as a result of
supply disruption, although only 46 were directly hit.
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