A number of British companies are exposing themselves to high risk because they do not have a prepared contingency plan to deal with a crisis.
This was the finding of a report recently released by the British Standards Institute (BSI). According to the report, almost 45% of British companies are not prepared to deal with natural disasters or terrorist attacks.
It also said that about 25% of companies will not be able to handle major IT-related problems.
The BSI said that the report’s results, which was based on a survey of100 FTSE 250 firms, was considered alarming, especially in the light of such events like the London terror bombings and the onslaught of Hurricane Katrina in the US.
The Institute also said that in the wake of recent events like the workers’ strike at Gate Gourmet (a known airline caterer) – and the consequences it ultimately had at British Airways – it was still surprising to find out that 28% of British companies admitted to not being ready to cope with any supply chain problems.
According to BSI Director Mike Low, “The FTSE 250 has a market value of over £200bn, and it is alarming that such a large proportion of businesses … do not feel adequately prepared for major issues such as IT failure or supply chain problems.”
Business solutions and company formation experts are urging small businesses as well as prospective entrepreneurs and businessmen to assess their plans for their respective businesses and take appropriate measures to put contingency plans in place at the earliest possible time.