Executive Briefings

Even in Post-9/11 Era, Executives Worry More About Their Supply Chains Than Terrorist Threat

Corporate risk takes many forms, but the things that most worry top executives aren't necessarily the obvious ones. Even though Sept. 11, 2001 is still fresh in the minds of most companies, the disruption of business by terrorist acts ranks relatively low on their list of concerns. That's the conclusion of a new survey by FM Global, a commercial and industrial property insurer. In "Managing Business Risk in 2006 and Beyond," just 5 percent of North American respondents cited "terrorism and sabotage" as top risks affecting their balance sheets. By contrast, 25 percent named supply chain problems as a major property-related risk. In the category of emerging global risks, the most-cited concern was government and regulatory issues. A substantial majority-66 percent- agreed that a major disruption to one or more revenue drivers could have a serious impact on market share and company valuation. Yet companies have much work to do before shoring up their organizations. Between one-third and one-half complained of insufficient time, personnel and budget to address their top risks.

Corporate risk takes many forms, but the things that most worry top executives aren't necessarily the obvious ones. Even though Sept. 11, 2001 is still fresh in the minds of most companies, the disruption of business by terrorist acts ranks relatively low on their list of concerns. That's the conclusion of a new survey by FM Global, a commercial and industrial property insurer. In "Managing Business Risk in 2006 and Beyond," just 5 percent of North American respondents cited "terrorism and sabotage" as top risks affecting their balance sheets. By contrast, 25 percent named supply chain problems as a major property-related risk. In the category of emerging global risks, the most-cited concern was government and regulatory issues. A substantial majority-66 percent- agreed that a major disruption to one or more revenue drivers could have a serious impact on market share and company valuation. Yet companies have much work to do before shoring up their organizations. Between one-third and one-half complained of insufficient time, personnel and budget to address their top risks.