THE chilling message from London's counter-terrorism chief that Edinburgh won't be spared future attacks resonated with me for several reasons.
First, because the day after I flew off on holiday from Glasgow last year, terrorists drove into the a
irport building. Second, his remarks about cultural and sporting events being possible targets made me think ahead to this Sunday, when I'll be at Murrayfield stadium with my son. And third, because I remain to be convinced that firms in Scotland are taking such threats seriously.
The police chief's comments are a stark reminder of the effect disruptive events such as terrorism can have, and the need for firms to plan ahead and manage risk. Most firms accept that continuity planning is important, but not enough is done in practice. That must change.
Terrorism is far from being the only disruptive menace to business. The threat posed by pandemic flu is being taken seriously by government, not least because of the potential for significant rates of workforce absence, which would impact on key services. CBI Scotland has been working with civil servants to ensure business is prepared for this.
Other threats to firms come from a multitude of sources, from direct action by radical activists, to loss of buildings and information and communication technologies (ICT) due to fire and flood or power failure, or even falling masonry.
There is a compelling business logic to being prepared for disruptive events and for ensuring the firm can return to "business as normal" as quickly as possible: four out of five businesses affected by a major incident close within 18 months.
It should not take a catastrophe to make firms think about a "Plan B". After all, disruption to the business will affect not just the availability of staff and the workplace, but cash flow, customer service and the firm's reputation, too. This also applies to a firm's suppliers. All businesses need to carry out a risk assessment. That means asking tough questions and ensuring senior management responsibility. Staff, customers and the supply chain need to be prepared. Testing the plans is critical.
CBI research published in December found that most firms (86 per cent) accept the importance of continuity planning and have a plan in place.
The best-prepared sector is banking/finance/insurance, with the weakest being manufacturing/construction. In the latter, only 27 per cent have a contingency plan. Larger firms have made more progress on this than smaller ones. However, fewer than half (46 per cent) test their plans each year, with deficiencies likely to be exposed only when the worst happens. Yet testing is a crucial part of being prepared. Barely a third of firms know if suppliers have a continuity plan.
In one sense, business has rarely been so exposed. Yet conversely – with ICT and flexible working more prevalent – many firms have never been more capable of coping. Being capable is one thing, being ready is what matters. The message from London's top anti-terrorist cop ought to be a wake-up call for firms to plan ahead.
The full article contains 526 words and appears in The Scotsman newspaper.
