Although insurance would compensate for the loss of your property, and in some cases for business interruption over a set period, if you have the right cover, it would not protect your business against loss of customers, loss of market share, increase in insurance cost, loss of experienced employees, etc. Research has shown that more than 75% of all businesses that suffer a major loss do not manage to get back into business and regain their market share. It is therefore management's responsibility to ensure that property, operations and people are adequately protected against all business related risks.
Managing property and operational risks is vital for companies' survival and prosperity.
Property and operational risks in commercial and industrial facilities take various shapes and forms, and can affect businesses in many ways depending on how severe and frequent these risks are. Companies can neither afford not to know their hazards, which can become major risks to their businesses, nor can they ignore them.
Gambling with your company's future is not a risk worth taking!
Most of these risks, which are listed below, are common to most businesses:
Property risks include: fire; explosion; chemical handling, storage & spillage; earthquake; flood; collapse; windstorm; hail storm; lightning; pollution; arson; burglary & theft; smoke & water damage; etc. These apply to projects (construction & installation) and existing facilities.
Operational risks include: property risks plus: health & safety risks; unscheduled business interruption; business bottlenecks; unavailable spare parts with long lead time; inadequate supply chain; lack of emergency planning; inadequate maintenance program; incorrect level of stock on site; lack of or inadequate business continuity planning; etc.
ECCS can minimise the impact of these risks on your organisation by helping you identify, quantify, prioritise, control and manage these risks adequately in line with your risk appetite and strategy, and be prepared for any eventuality.