As so many business continuity (BC) or disaster recovery (DR) professionals will attest, getting management to support and fund an active BC/DR program  within their organization is often much more difficult than the implementation of the program in the first place.

Bottom line is that most Board of Director meetings – especially in SMB entities – focus more on revenue growth and profitability to satisfy the short term shareholder values of their investors  than they do in realizing the true risk management component that is needed to deliver those profits and revenues –even in the face of potential disruptive events.  In so many words, management is willing to “take its chances” that the probability of having a serious economic impact to its organization from a disruptive event is something that can easily be “covered” by getting a proper insurance policy where the insurance company takes the risk and the all the organization has to do is find a way to justify and fund the premiums of such a policy.  Or, perhaps even more prevalent under the current economic constraints, they tend to ignore the risks because they perceive that the economic cost is beyond their capabilities at this time.

Recently, such risk avoidance thinking has permeated the strategies of investors in the main stream, and continues to do so in ways whereby investors are now looking to recoup money lost in the recession by betting on the likelihood that a catastrophe will soon strike.

If this idea strikes you as strange as the avoidance by management willing to invest proper time and money into protecting their organizations from a catastrophe, then we advise that you read a recent article written by Emily Holbrook, posted on the RiskManagerMonitor.com website and entitled, “Betting on Catastrophes”.

Be sure to follow the links provided in this article to further explain the background, historical and future trends are indicated in the unprecedented level of investors on the expectation that a massive hurricane, large earthquake or torrential flood will take place at some time in the future.  CLICK HERE to read this article.

Please share your comments and thoughts with our readership by commenting your reaction and opinion of this growing investor behavior.  

If you find this information applicable, please pass it along to those business continuity, disaster recoveery, risk management or crisis management team members in your organization.

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