Crisis planning and insurance take on new significance post-2003

SARS, blackouts and unusually harsh floods and hurricanes are challenging businesses with new scenarios that haven't been traditionally included in operational and technology recovery planning. According to KPMG's Insurance Practice, these same factors have also made insurance companies less willing

KPMG is suggesting that businesses revise their views on purchasing insurance. This, the company notes, is only one alternative to handling a risk. If insurance becomes more expensive or less available, the company suggests retaining more of the risk yourself, or do more to mitigate the risk. Larger businesses, for instance, particularly those with widespread operations that physically spread out their assets, have commonly retained some risks rather than insuring them.

"This approach isn't for everyone, and may not save money in the end," says Neil Parkinson, partner in KPMG's Insurance Practice. "However, just about everyone can benefit from the last option, doing more to mitigate risks through loss prevention and preparedness."

For more information visit www.kpmg.ca.