17/03/2010 - Firms 'under-prepared' for crises
Businesses managers are being urged to prioritise planning after a study found that many companies may be "dangerously under-prepared" for crises in the form of extreme weather or major IT issues.
According to research by the Chartered Management Institute (CMI) and the Cabinet Office, only half of businesses and other organisations had strategies in place to deal with such emergencies.
Out of 900 firms surveyed, 90% suffered during the December freeze last year, but fewer than half considered the weather to be a significant threat to business.
CMI chief executive, Ruth Spellman, warned: "Some business leaders have taken an ostrich approach to planning, simply burying their heads in the sand and hoping that they do not have to deal with the worst.
"Neglecting business planning is reckless in the extreme and it represents a huge failure of management in the UK."
Ms Spellman added: "Despite the pressures of the economic downturn, UK businesses have to appreciate that business continuity management is not a 'nice to have' - it is crucial to business survival.
"Until UK managers have the time and skills they need to write, test and update these plans, and leaders give them the priority they deserve, this will remain a severe risk for the UK economy."
Copyright © Press Association 2010
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