A new survey
of financial executives representing the largest corporations in North
America reveals almost all companies are exposed to natural disasters,
yet many of those firms are not well-prepared for such catastrophes and
are not overly concerned about the potential business impact.
"The findings reveal a surprising and concerning gap between the levels
of natural catastrophe exposure among North America's largest companies
and their level of preparedness," says Ruud Bosman, executive vice
president, FM Global, "Especially given that, in the first half of
2008, there were about 400 natural catastrophes worldwide with overall
losses expected to top US$50 billion."
Among the findings, the study findings indicate a consistent disconnect
across three of the most common and costly types of natural disasters:
hurricanes, floods and earthquakes.
Hurricanes:
• While 80 percent of companies have North America operations
located in regions exposed to hurricanes, nearly 50 percent reported
they are not well-prepared for a hurricane.
• Nearly 80 percent of financial executives from those companies
are not overly concerned that a hurricane/typhoon or tropical cyclone
could negatively impact their company's bottom line.
Floods:
• While 90 percent of companies have North America operations
located in regions exposed to floods, more than 60 percent indicated
they are not well-prepared for a flood.
• Almost 90 percent of financial executives from those companies
are not overly concerned that a flood could negatively impact their
company's bottom line.
Earthquakes:
• While more than 80 percent of companies have North America
operations located in regions exposed to earthquakes, more than 70
percent revealed they are not well-prepared for an earthquake.
• Eighty-five percent of financial executives from those
companies are not overly concerned that an earthquake could negatively
impact their company's bottom line.
Study: Most Large Companies Unprepared for Natural Disasters
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