2017 Indicated an Increase in the Activation of Crisis Management Plans
In 2017, we witnessed dramatic natural events unfold, such as the flooding from Typhoon Hato and Hurricane Harvey, the wind damage from Hurricane Maria, monsoon rains, devastating earthquakes and tragic fires in California, Chile and Portugal. We also experienced new waves of cyber events, such as Wannacry, Petya/Not Petya, Cloudbleed and more cyber breaches. 2017 has been described as one of the most expensive and deadly years for disruptive events, passing 2005 when Hurricane Katrina struck the gulf coast.
This conclusion is supported by the data released in the 7th Edition Firestorm Crisis Event Impact Management Study. The study, developed by the Firestorm Analytical Solutions team, compiles data on business continuity management programs and compensations to provide professionals with the information they need to elevate their programs.
Since 2010, the Firestorm Analytics team has identified a number of trends that have become important for practitioners and organizations alike. We are seeing an increasing percentage of crisis programs that are activated each year. While there are potentially both internal and external factors that are influencing this, there has been an increase in activation from 2012 to 2017 of 41 percent to 75.6 percent respectively. That is more than a 30 percent jump.
This frequency-based indicator highlights the increasing need for industry professionals and program development. Based upon the disasters of 2017, what have we learned from the past to better prepare for the future?
During the study, we asked participants to specify when their crisis program was thoroughly updated. Eight percent indicated their company had not updated programs in 4-10 years, while roughly 18 percent noted their plans were currently in development, as indicated in Graph 1.
Have you updated your crisis program, regardless of if you deployed your plan last year? The time to prepare and plan is now, before a crisis strikes your organization and people. We’re here to help. Contact us to learn more about creating a robust crisis program.
Learn more about the Crisis Event Impact Management Study or order your copy
This important global study combines data from executives across 14 countries in over 50 major industry verticals and encompasses 45 different disruptive event types. These events range from impacts due to terrorism, industrial accidents, natural disasters, cyber incidents, lawsuits, fraud and political instability.
The study was developed by the Firestorm Analytical Solutions team in conjunction with the study’s international Benchmarking Advisory Board. The study was launched in November of 2017 and remained open through January 2018.
“This report quantifies the various types of economic impacts on a business due to disruptive events and identifies year-over-year trends. Our goal in this annual research is two-fold. First, to help people understand the costs associated with incidents that not only reduce the ability to conduct business. And second, to show the effectiveness of efforts to adapt and resume normal activity.” – Hart Brown, Firestorm COO.
The study includes findings in various fields, including:
- Length of time crisis programs exist
- Program Maturity Self Assessment
- Pre-Event Planning
- Program Activation
- Financial Impacts
- Average hours lost due to crises
The complete report is available through www.firestorm.com