Value of Tangible assets

Risk Management A changing framework

1970s 2000+

Production based

economy

Mainly

National/Local

Founded on Plant,

Labour etc

Knowledge based

economy

Value of Intangible assets

Knowledge

Reputation

Management

Image

Traditional

Asset

Protection

Example PEST model

IT/Systems Breakdown

Contamination

Industrial Accident

On-site product tampering

Malicious acts

Organisational failure

Industrial Accidents

Government Crisis

Utilities failure

Sabotage

Terrorism

Labour strikes

Off-site product tampering

Technical Economic

People Social

The impact on shareholder value

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

Trading days after the event

25 50 75 100 125 150 175 200 225 250

Effective crisis response

Ineffective crisis responses

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

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

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 Flood Terrorism

Hackers Power IT

The Business Continuity Institute 2001

Time

Level o

f busin

ess

Critical

recovery point

B

No BCM lucky escape

C No BCM usual outcome

A

Fully tested

effective BCM

2

P

1

5

4 3

Understanding Your Business

Business Continuity Managem Strategies

Develop and Implement BCM

Plans & Solution(s) Building &

Embedding a BCM Culture

Exercising, Maintenance

and Audit B C M

Programme Management

Business Continuity Institute 2002