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
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