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Finance Execs Admit to Underpreparing for 2017 Hurricanes

January 26, 2018 Leave a comment DRI Admin

Financial corporations with operations in Texas, Florida, and Puerto Rico learned some harsh lessons in the wake of the 2017 hurricane season, as many executives had to admit that they were underprepared to deal with the devastating effects.

In a recent survey of companies with more than $1 billion USD in revenue 64% said the hurricane season had an adverse impact on their operations. Of those affected, 62% said they were “not completely prepared” to deal with the effects of the hurricanes.

Why the lack of prep? One researcher pointed to confusion over imprecise terminology – for instance, phrases like “100 year flood” do not mean you have 99 years to plan. The survey also pointed to over-reliance on insurance and denial of potential risk.

The good news: a harsh lesson has been learned, as nearly 7 in 10 (68%) expect to make changes to their risk management strategies in the future. Among the plans:

  • 57% will enhance their business continuity/disaster recovery plans
  • 40% will invest more in risk management, loss prevention, and supply chain strategies, and
  • 25% will reassess their insurance coverages.