Risk management & business technology resiliency - What's changed since 2009
The aftermath of the financial crisis and big corporate blunders further emphasised the value of risk management
Published 16:28, 07 November 12
- The aftermath of the financial crisis and big corporate blunders further emphasised the value of risk management. Events such as the BP oil spill and the Toyota recall are just two of the largest events that have taken place in the last three years. Couple these with new government regulations such as the Dodd-Frank Act and other news events like J.P. Morgan’s $5.8 billion trading loss, and you can see why it’s important for companies to follow risk management best practices - and the potential high costs of ignoring them.
- The frequency of natural disasters kept BT resiliency and crisis communications top of mind. The destructive course of Hurricane Sandy is affecting millions living in the US along the East Coast, with its full impact still to be determined; current estimates project the damage could cost upwards of an estimated $20 billion in insured losses and $50 billion in economic losses. Last year, Hurricane Irene caused about $4.3 billion in losses, and was one of just 14 storms where costs were estimated to be at least $1 billion. And let’s not forget about the 2010 Haiti earthquake and the Fukushima nuclear disaster (set off by an earthquake and ensuing tsunami) - both of which had catastrophic consequences in their respective regions.
- Social media established itself as a valuable business technology. Using both internal, enterprise social networks such as Chatter and Yammer, and public social networks such as Twitter, Facebook, and LinkedIn, companies, employees, and consumers alike use social media for a variety of business and personal purposes. Crisis communications teams use social media to disseminate critical crisis information and instructions, and employees and the rest of the population use social media to gather information about crisis updates, public service announcements, etc. For example, as Hurricane Sandy rolled through New York City, the New York Fire Department used its Twitter account to help relay information to dispatchers for people in distress who couldn’t reach jammed emergency lines.