Shareholders and Emergency Planning
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Loading ...What is the impact of a lack of disaster planning on shareholders of public companies?
First, lack of planning ensures that a disaster will have worse effects than it should, plants will shut down longer, personnel injuries lead to litigation. An organization can often avert or reduce serious liability by planning and demonstrating that it took necessary steps to prevent and prepare for emergencies. In addition, lack of planning affects the organization’s ability to control information and maintain truthful and effective information dissemination. If information is controlled and disseminated strategically, ensuring that truthful and accurate information reaches the public. Poor information operations are a sign of ineffective leadership, further shaking investor confidence. All of these factors shake shareholder confidence and have deep implications in the overall security of the organization. If a major disaster affects a public traded company and shareholders are not confident in the company’s ability to recover quickly, they will sell stock. If too much stock sells off, the company’s stock value drops. Devalued stock affects the company’s value; it also affects employee retirement plans and the company’s ability to raise revenue for rebuilding and recovering from the disaster.
You can reduce your exposure.
Risks addressed when developing protection plans and strategies fall into two categories, natural and man-caused. Another area that should factor into any assessment are multiple risks, these risks result from preceding risks. For example, after a hurricane or other natural disaster there is an increased risk of violent criminal activity and looting. Examples of this occurred following Hurricane Katrina in 2005. Another example of this is the possibility of mudslides following a Seismic event or flooding that follows a late winter blizzard.
Natural Risks
Natural Risks are those that generally occur regardless of human action to prevent or promote them. These “acts of nature” usually are not preventable; however, their effects can be mitigated. Many events fall into this category including; tornado, hurricane, earthquake, volcano, flooding, drought, blizzards and ice storms, solar events, and avalanches to name a few. Pandemics are a newer natural threat, new only because man’s ability and propensity towards globalization has made the threat of a disease’ ability to spread more dangerous, rapid and effective.
Man Caused Risks
Man Caused Risks can come in many forms, some are strictly intentional and others can be inadvertent. Examples of accidental risks are vehicle accidents, hazardous material releases, structural failures, railway accidents, air traffic accidents. Characterization is more complex when a natural disaster impacts a man made facility and human action compounds the incident. The recent earthquake and tsunami in Japan led to the disaster at a Japanese nuclear power plant. This is an example of a multiple risk event mentioned at the beginning of this paper. Was it a man caused or natural event? This is an interesting aside, mentioned to illustrate the complexity of the argument. Also, consider how an insurance company might react to an insured event propagated by an uninsured event.
Intentional Man Caused Risks are usually either criminal or terrorist acts that affect personal, business, and/or government operations. These risks often take on the greatest emphasis because they are the most preventable. Examples of these risks are robberies and thefts of physical or intellectual property, workplace violence up to and including active shooter instances, flash mobs and other civil unrest, kidnapping, and terrorist attacks. Terrorist attacks usually fall into their own category due to the complexities involved however; they are at their base, a criminal act. Often the same techniques used to avert other criminal acts can be affective against terrorists. Terrorist attacks include explosive attacks, kidnapping, arson, sniping, chemical, biological, radiological, and cyber attacks.
Conclusion
Assessing risks requires time, detail, information, and multidisciplinary knowledge. Risk assessments are best approached with a multi-disciplinary team of specialists. However, when this is not possible the risk management professional should do his best to ensure a comprehensive report that serves as a tool for executive decision-making and ensure that the decision makers understand where the information gaps lie. Only then can executives feel confident that they are making the best decisions to protect assets.
Very few businesses have a lawyer or an accountant on staff, but
most small businesses need one. The problem is solved by hiring
one only for the times and functions you need them for. Similarly,
small and medium sized businesses require security
management but not on a full time basis. In these cases it is helpful
to have a security professional who is a phone call or email away.
Consider the same approach for security that you use for financial
and legal services.
Marciano Security Management Solutions provides your security
management at an affordable price. At MS2, we care about your
business Let us manage your security so you can manage your
business with the confidence that a solid security foundation
provides.
We are in business for your business!!!
(1 votes, average: 5.00 out of 5) Loading ...We are a Security Consulting Company providing World Class solutions to businesses. We specialize in small business solutions in the Arkansas River Valley and Northwest Arkansas, that are scaled to fit the individual client’s needs.
So why do you need a Security Consultant? As a security professional with almost 30 years in the business, I can show you how to protect your business effectively, efficiently, and economically. At Marciano Security Management Solutions we bring together a team of professionals that are capable of designing your security system and more importantly designing your business’ physical environment to shrink your security needs. The earlier we get involved the more you save and the better your protection.
So, if you have a small business in the Fort Smith area, Northwest Arkansas, Eastern Oklahoma or anywhere else in the region call us and we will help.
We will use this blog to inform you of the latest security related information that affects your business. We look forward to seeing you on the blog and helping you with your security needs.
Emergency and Disaster Management
(No Ratings Yet) Loading ...MS2 Provides a full range of Emergency/Disaster preparedness solutions. We can assist you with all your planning and training needs, write your Emergency Action Plan, assist with sourcing requirements, and conduct exercises and training,
| Do you ever wonder about how secure your business is? Do you know where your shrinkage is occurring? Do you have a security contract and want to know if it is adequate? Marciano Security Management Solutions can help! We can provide detailed program review that answers all of your questions. At MS2, we have the expertise and experience to find the strengths and weaknesses in your security before the criminals do. | Through our program, we will apply your security program against industry standards and best practices through the use of:
| At the end of our assessment we will provide you with a detailed report and help you to correct deficiencies. You will be able to do business with confidence knowing that you are in charge of your security and have better control of your business environment. |
Once you have a comprehensive security program you may need periodic management review and sustainment training. We provide outsourced management services scaled to fit your businesses needs. MS2 can conduct periodic inspections, training and adjust your program as needed.
Some of the areas that may require management are:
| Key and Lock Control Access Control Visitor Management Employee Screening Security System Management |
Marciano Security Management Solutions provides your security management at an affordable price. At MS2, we care about your business Let us manage your security so you can manage your business with the confidence that a solid security foundation provides.
Some of the areas that may need attention:
| Loss Prevention Visitor Management Workplace Violence Prevention Business Continuity Key and Lock Control Security Features |