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BI Exposure and BI Value


Business interruption exposure and business interruption value are two different things, each of which must be assessed independently. The evaluation demands a deep look into the supply chain and other risks that can affect an organization’s profits.


“With the world getting smaller as we’ve seen in Japan and Thailand, I think that it’s becoming more and more important that people take a look at where these exposures are within their supply chain and within their business operations.”


Dave Mahoney, Zurich


Risk managers must insert themselves into more aspects of the business so that they can evaluate exposures that extend well beyond the bounds of physical assets. They need to understand and stress test the supply chain, logistics and the production process. By considering the various exposures that an organization has and the dollar value of those exposures, risk managers can ensure they have sufficient coverage to protect the risk associated with their income statement.


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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