Extreme weather events, infrastructure and technology failures, and transportation accidents are on the rise globally. These physical threats often have cascading effects that reach all areas of a business. Organizational resilience, or the ability to anticipate, absorb, and recover from hazardous events, is now table stakes. When the C-suite prioritizes resilience, they set the business up for recovery in the face of these physical threats, saving time, resources, and revenue and making the organization more competitive. But the C-suite has historically prioritized the risks that have a direct financial impact on the bottom line, favoring investments with tangible financial returns. A simple ROI calculation won’t cut it for physical risk prevention and mitigation investments because they can’t be measured by increases in revenue. A financially sound business strategy requires a focus on return on resilience investment (RORI), which shows in monetary terms what damage was avoided, not what income was gained.
While cyber incidents are already a top concern for most business leaders, organizations are simultaneously facing a dramatic uptick in physical incidents that have the potential to impact their people and operations. Leaders in risk, security, and business continuity know all too well that these threats, such as extreme weather events and infrastructure failures, continue to become more frequent and interconnected.
But a simple ROI calculation won’t cut it for physical risk prevention and mitigation investments because they can’t be measured by increases in revenue. In a world of increasing physical threats, a financially sound business strategy requires a focus on return on resilience investment , which shows in monetary terms what damage was avoided, not what income was gained.From 2021 to 2022, extreme weather events were up 42% in the U.S. and 72% globally.
Organizational resilience, or the ability to anticipate, absorb, and recover from hazardous events, is now table stakes. Ultimately, when the C-suite prioritizes resilience, they set the business up for recovery in the face of these physical threats, saving time, resources, and revenue and making the organization more competitive.
But the C-suite has historically prioritized the risks that have a direct financial impact on the bottom line, favoring investments with tangible financial returns. RORI allows them to quantify the “return” they can expect from the three primary impacts of a physical incident:Physical incidents pose a direct, tangible threat to business operations and the bottom line.
RORI can vary greatly depending on the type of business, size, revenue, and industry. It can be calculated by subtracting the annual average lost revenue of a physical incident’s direct impact from the amount of resilience investment spent in a year. ALR is calculated by the average revenue from business operations per day, multiplied by the number of days lost due to incident impacts that occurred over the course of a year.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
1 Stock to Buy, 1 Stock to Sell This Week: Salesforce, Dollar GeneralStocks Analysis by Investing.com (Jesse Cohen) covering: Salesforce Inc, Dollar General Corporation. Read Investing.com (Jesse Cohen)'s latest article on Investing.com
Les mer »
Energy & precious metals - weekly review and outlook By Investing.comEnergy & precious metals - weekly review and outlook
Les mer »
Samsara Is Connecting Physical Operations To The Cloud With The Help Of AISamsara’s platform enables businesses that depend on physical operations to harness and analyze IoT data. Last year, Samsara's total revenue rose 52% to $652.5 million.
Les mer »
Oil prices edge higher after two weeks of losses, WTI tests $80 By Investing.comOil prices edge higher after two weeks of losses, WTI tests $80
Les mer »
Dow futures tick higher, Fed mulls further hikes By Investing.comDow futures tick higher, Fed mulls further hikes
Les mer »
Australia retail sales rise more than expected in July By Investing.comAustralia retail sales rise more than expected in July
Les mer »