RIMS BI Survey: Quantifying loss ‘difficult’

By taking control of their data, establishing a team and developing plausible business interruption (BI) figures before losses occur, risk managers can do much to lessen the confusion and frustration common to these claims process, according to the RIMS Business Interruption Survey 2017.

Key findings from the recently published survey include: Only 17 percent of risk managers were “extremely confident” that their BI values and limits are adequate; 58 percent of risk managers who have been through a claim said that “difficulty quantifying loss” was the biggest challenge they faced; and 39 percent of risk managers indicated that their existing BI policy provides either insufficient or no coverage for cyber risk. About 10 percent were unsure whether the policy covered cyber risk.

“With a world of emerging risks keeping business leaders up at night, risk professionals must prepare their organisations for the very real possibility that their business might suddenly come to a screeching halt,” said RIMS CEO Mary Roth. “The exchange of knowledge and best practices makes it easier for risk professionals to ensure that appropriate measures are taken before, during and after an interruption occurs.”

RIMS Business Interruption Survey 2017 was developed by members of RIMS Business Interruption Working Group. The group comprises global business interruption experts from leading underwriters, accounting firms and brokerages including Ernst & Young, Marsh, Meaden & Moore and Vericlaim. The group oversaw the survey, providing analysis and case studies to further explain the findings.