Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction


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Similarly, international standards are not yet fully articulating disaster risk dimensions. For example, although the ISO 31000 standard on risk management can be adapted to any type of risk, it does not explicitly highlight disaster risk. i This gap has been identified, and companies are taking initiatives to address it (see Box 11. 1).
After witnessing large disasters, global businesses are now beginning to consider how to manage disaster risks. For example, a 2011 poll of 1,000 senior global executives highlighted that 29 percent had been financially affected by the 2011 Great East Japan Earthquake and accompanying nuclear disaster (PwC, 2012

PwC (PricewaterhouseCoopers). 2012.,Risk in Review: Rethinking Risk Management for New Market Realities., March 2012., London,UK.. .
). And 24 percent of these were taking measures to strengthen their risk management capacities (Ibid.).
In another poll, 90 percent of businesses stated that they had suffered weather-related disaster impacts
over the last three years. Of these, 53 percent were now investing to strengthen risk management—for example, protecting operations and offices and bolstering supply chains (UKTI, 2011).
Supply chain resilience has attracted particular attention because risk has increased through globalisation (see Chapter 2 of this report). Factors that influence supply chain vulnerability include: dependence, for example, to what extent is the supply chain dependent on one single supplier; visibilty, to what extent is the supply chain risk visible; and design information portability and substitution, how quickly can design information be transferred from one affected supplier to another and how quickly can production be resumed at the substitute supplier (Fujimoto, 2011

Fujimoto, T. 2011.,Supply Chain Competitiveness and Robustness: A Lesson from the 2011 Tohu Earthquake and Supply Chain “Virtual Dualization”., Tokyo,Japan.. .
).
Many smaller businesses, however, face a challenge in addressing disaster risk. Having an emergency
(Source: Sarmiento and Hoberman, 2012)
Figure 11.1 Percentage of companies with business continuity plans or crisis management programmes (by company size)v
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