Businesses must take a 'holistic approach' to risk management

08/04/2008

The Association of British Insurers (ABI) has advised business owners to plan 'holistically' for major emergencies that may affect the safety of their businesses.

Major incidents that companies should now prepare for include natural disasters like flooding. According to the ABI, last summer's floods resulted in an estimated 27,000 claims from commercial companies.

The ABI's Kelly Ostler-Coyle said that often businesses are unprepared for such events because they are either insufficiently insured or do not have a contingency plan.

Ms Ostler-Coyle said: 'It's about businesses looking holistically at the problem and to keep renewing how they look at that problem.'

She advised businesses to work with their insurers to ensure the best continuity plan was in place as risks changed all the time.

Her comments came following the early results of the Department for Business, Enterprise and Regulatory Reform's 2008 Information Security Breaches survey which found that a quarter of UK businesses did not have a disaster recovery plan on their IT systems.