London-based AIRMIC is an association for private sector risk managers in the United Kingdom.

The findings, presented at AIRMICs annual meeting in Manchester, England, “confirm that risk managers are increasingly accepting the unthinkable can happen, and it cannot necessarily be insured,” said AIRMIC Executive Director David Gamble. “Therefore, it is vital to maintain the continuity of the business.”

The fourth-highest concern on the list was fraud, while the fifth was regulation, the sixth was fire, the seventh was information technology, the eighth was intellectual property and the ninth was terrorism. Theft rounded out the top 10 concerns, according to Mr. Gamble.

During a press conference, Nick Chown, the new AIRMIC chairman, said that there are increasing signs that insurers drive the interest in business continuity because of the close connection between business interruption insurance and business continuity planning.

“If youre an insurance company, why would you not want to satisfy yourself as to the adequacy of your policyholder or prospective policyholders business continuity plan if youre thinking in terms of providing them with business interruption insurance,” he continued.

Regarding the concern about contracts, Mr. Gamble said risk managers increasingly are looking at the contracts their companies are signing, in areas that go well beyond insurance contracts.

Many activities are being outsourced and there are many occasions when an organization will work with other companies. So the contract area has become very important, he indicated.

David Ireland, the past chairman of AIRMIC, said he put contracts at the top of his list of concerns. Mr. Ireland also is group insurance director at Vinci plc, a construction company located in Widnes, England.

“You always have to look at contracts. You always have to look at the liability that youre taking on or being asked to take on board,” he said.

“I dont think people appreciate how much wider it goes with regards to leases and all sorts of other contracts that businesses have,” Mr. Ireland added.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 18, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.