In this series, we are focusing on ways in which a Risk Manager can add value to the bottom line of his or her organization using RMAP(1) technology.  These avenues of added value include: lower cost, asset protection, revenue enhancement and competitive advantage through better management of tactical and strategic Risk.

Asset protection:   Today’s BLOG will focus on Business Continuity.

With today’s alert technology, an organization with widely distributed properties and multi-tiered suppliers can establish protocols for reacting to multiple disaster scenarios worldwide.  The key to this genre of technology is a system that can poll the world in real or near-real time for dozens of event types (e.g. Earthquakes, Windstorms, Floods, Political Unrest, Pandemic, Bio-hazard, etc.) and automatically make decision based on the pre-established rules for locations in the “impact zone.”  Not only can the system be set up to automatically inform of any potential damage, but can be set up to implement disaster recovery plans, contact employees through SMS text message and provide statistics on property values at risk and potential supply chain disruptions (along with the impact of those disruptions)

Assuming that we have done our BCP homework, the system may trigger notification to alternative suppliers that our mutual contingent contract for vendor replacement is now in force.  The ROI on this solution includes, in the extreme, the survival of the organization.

(1) RMAP = Risk Management Automation Platform (this is not an official term… I just made it up)