A MUCH GREATER APPRECIATION OF RISKS
by Autor
Nick Gardener, group manager for risk , and health, safety
and environment (HSE) at international chemicals manufacturing firm Elementis, explains why his organization
developed a BCM plan in dialogue with Allianz
There were three key reasons be-
creating a BCP at Elementis to im-
Corporate governance and forward
hind our decision to implement a
prove our risk. We already had
planning are clearly key strategic
business continuity plan: pro-
emergency and disaster recovery
issues that the organization rates
tecting profits and reputation; de-
plans in place, but these were main-
highly.
monstrating to others that we are
ly health and safety focused: suffi-
doing so; and minimizing our total
cient to make people safe and pre-
cost of risk (such as insurance pre-
vent further damage or pollution.
miums, uninsured losses and ma-
They did not take into account how
nagement costs).
to get back up and running, with
Back in 2003 we changed the
minimum disruption, following an
way that we thought about insur-
event with the potential to close a
ance coverage. Prior to that, we just
site down for a lengthy period, such
bought insurance as a financial tool
as through a fire or flood.
NICK GARDENER
Elementis Group Risk & HSE Manager
Nick.Gardener@elementis-eu.com
NICK GARDENER’S TIPS
FOR A “CRISPER” BCP
to cover the conventional insurable
As a result, we now have a
risks facing the business. But then
much greater appreciation of our
we decided to look at our cover, in-
uninsured risks and what we need
cluding areas that were not covered
to do to control them. The process
or only partially covered by insur-
has also resulted in Allianz having
ance. This meant that we started to
greater confidence in how we would
Reputation – assess the
become more involved in shaping
mitigate the impact of low-likeli-
our insurance policies to reflect
hood, but high-impact, catastrophe
impact on reputation, protect
by decisive effective action!
what we wanted covered and our
risks. Finally, in addition to desktop
Insurance – ensure that there
approach to risk management. This
testing, real-life events have tested
initial step reduced premium costs
our plan and shown it to be robust.
is a process for early notification of loss
and improved general corporate
Our BCM plan provides share-
governance.
holders and regulators with evi-
After monitoring the improvements
dence that risk management is a
in our approach to risk manage-
board level issue - cascaded down
ment, we were ready in 2006 to
through the organization so that all
establish a formal business conti-
employees understand its impor-
nuity plan. By this time Allianz was
tance. Having a business continuity
the lead insurer on our insurance
plan shows stakeholders that the
program and we were working col-
board and senior management
laboratively to reduce property da-
have bought in to the importance of
mage and business interruption
risk management – protecting their
risk. Allianz acted as a catalyst for
investment and local communities.
Communication – think: who,
what, when, how?
Supply chain – what needs to
be done with suppliers and
customers
People – will they be safe,
available, organized
Environment – check what
has been affected, contain,
notify authorities
Recovery – premises, alternatives, options