Crisis risks typically have immediate impact on people, assets and operations as well as longer-term impact on a company’s brand and reputation. In today’s world of social networks and 24-hour news, an incident can develop rapidly into a crisis that can threaten an organization’s very survival.
Preparedness and resilience are critical features of crisis risk management, and understanding the nature of the risk in detail is vital to ensuring appropriate measures. While it is essential that a company anticipate or take measures to prevent a crisis, it is also important to prepare robust measures to respond and recover should an incident occur.
Gaining insight into the nature of crisis exposures further ensures that risk transfer programs are tailored to a company’s particular needs and is more cost-effective.