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28 Mar 2008
Climate change will be considered as a major threat to businesses over the next decade according to a survey commissioned in time for the Business Continuity Expo 2008.
The Emerging Risks survey, sponsored by insurance broker and risk adviser Marsh, revealed that 87 per cent of businesses regard climate change as the biggest threat in terms of risk assessment, with many unaware as to how to prepare.
Over 150 major UK and European companies were questioned and the results revealed that climate change as threat to business continuity scored ahead of terrorism, pandemic flu, flooding, the credit crunch, government red-tape, outsourcing and offshoring.
Martin Caddick, Leader of Marsh’s Business Continuity Management team, said: “Climate change and energy risk consistently rank among the biggest challenges facing global businesses in 2008.”
The survey also revealed that 83 per cent of businesses were concerned that traditional sources of energy will reduce and the cost of oil and gas will continue to rise over the next five years. 60 per cent were not prepared for this, indicating a gap in knowledge regarding alternative sources of energy and are not proactively seeking an answer for it.
“While the majority of firms surveyed have accurately identified the major risks that could affect their businesses, fewer seem to be successful in tackling them head on. This lack of preparedness continues to be a major issue for European firms in today’s turbulent times,” added Caddick.
75 per cent of large manufacturing companies, which believed there will be a terrorist attack, admitted they had not prepared for such an incident.
60 per cent of businesses believed there will be a terrorist attack on UK soil within the next 18 months and 73 per cent of these companies have planned for such an event.
According to the survey 74 per cent of businesses see bad weather as a real threat of which 70 per cent are prepared for floods and storms.
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