Modeling Business Interruption Risk


A business interruption model has the greatest value when it reflects what is actually happening in the business.


“From a practical standpoint, models provide insight into the potential impact and possibly the relative probability of risk scenarios that have been identified.”


Laurie Champion, Aon


Most organizations have the finance, purchasing and operations data necessary to effectively model their business interruption risk, but they must be willing to commit the time and effort to analyze the business model, understand the internal and external supply chain and assess the organization’s ability to mitigate the risk. The insights models deliver can help executives made decisions about risk mitigation strategies, including investments in loss control, business continuity planning and supply chain management.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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