May 25, 2009

Failure to manage post-disaster liability risk may cost you

By Mark Stephenson, KnowledgeLeader contributing writer

As the first decade of the 21st century has demonstrated in stark terms, the need for robust recovery and business continuity plans in the face of increasingly costly disasters, whether natural or manmade, has never been greater. However, even the most carefully crafted continuity plans may be missing a vital component: the risk of disaster-related liability actions brought on by affected parties. This article discusses how failure to plan for these events imposes great risk to the organization, and how internal audit can help manage these risks.