Businesses Need to Look Ahead for Areas of Emerging Crisis Management
During 2011, the world dealt with a large number of natural disasters, including an earthquake and tsunami in Japan, worsening economic woes in Europe, devastating tornadoes in the U.S., and revolutionary actions and regime changes in the Middle East. This has set the tone as corporations prepare to deal with what might be in store during 2012, according to a www.insurancejournal.com article.
With that in mind, multinational corporations have found the need to be cautious and flexible in their approach to countries that host their businesses. Many businesses are finding that developing a more comprehensive knowledge about business vendors goes a long way toward overall preparedness for any unforeseen incidents and disasters.
A recent poll at the World Economic Forums in Davos, Switzerland, revealed that 54% of respondents feared a major geopolitical event happening, which is an increase from 36% reported during the last quarter of 2011. As such, more and more companies are assessing disaster preparations being taken by other companies who serve them in a support role, such as vendors and banks.
In light of last year’s tsunami in Japan, some companies are diversifying their supply chains to account for any future disasters and to avoid a repeat of the disruptions that happened with that event. And with the impetus on being prepared for what might be thrown at them, some companies have resorted to what amounts to industrial espionage, hiring former spies to learn what they can about their trade partners in foreign countries.
Companies are also starting to value quality over quantity, especially in the banking industry where companies are moving their money from weaker institutions to ones that are more financially secure, such as some of the bigger banks.
The importance politics takes in the business world is also gaining recognition, as analytical firms are finding themselves being tapped for their geopolitical knowledge and insight into popular trends worldwide.
For more information about how businesses are beginning to prepare for future disasters, visit: http://www.insurancejournal.com/news/international/2012/01/30/233123.htm