Critical Infrastructure Protection: Resolve to be Ready...

CxO’s in corporate enterprises are ever more concerned about emergency preparedness and the continuity of their enterprises.

Now that threats to government and business operations are becoming ever more prevalent, organizations must plan for every type of business disruption from hardware and communications failures, to natural disasters, to internal or external acts of terrorism.

Being forced is never as appetizing as being induced to do anything. In order for changes to take place, the environment must reward investments in preparedness and safety.

Consistently the conversations are not about “if” something is going to happen, it is about “where” or “when” it is going to happen.

In order to introduce new changes in process or design that impacts the physical or operational aspects of critical infrastructures (to reduce terrorism risk), it is important to better understand how these change levers can provide the incentives for owners.

Therefore, it is imperative we initiate a proactive hedge against the inevitability of a loss event occurring in the future.

First however, we must understand the character of terrorism risk in critical infrastructure and some of the anti-terrorism tools currently available to help manage that risk.

The recognition by insurers that owners will continue to invest in terrorism risk reduction and building safety with the proper incentives is vital to overall risk management of critical infrastructures. Think “Ransomware” or even Colonial Pipeline.

The assessment of terrorism vulnerability in key structures identified as soft targets can be a key component of the rating of risk for a specific structure.

In order for owners to benefit from the potential of reduced premiums from direct insurers they must be able to demonstrate a combination of risk mitigation measures and programs to help improve the survivability of the infrastructure or to reduce it’s vulnerability to certain threat profiles.

These need to be exercised on a continuous timetable with extensive documentation, training and reporting.

In order for insurance brokers to accurately represent their buyers mitigation programs and measures to the direct insurers, they must have a foundation of knowledge about the structures physical vulnerabilities.

However, even more essential is the understanding of the operational and human attributes of the building that are contributing to the proactive tactics to prevent losses and further exposures to potential terrorism risk.

If this step takes place, the insurers can better evaluate these operational and human elements to determine the value and effectiveness of these tactics so that they can be considered for premium reductions.

The building itself, two miles from The White House, 10 Downing Street or the Eiffel Tower, has little chance of moving outside the high-risk zone for terrorist events.

The only methods for reducing risk exposures are to dramatically impact the operational and human elements of the building to mitigate hazards and increase the survivability of the people and systems that are resident.

As landlords and other interested real estate finance industry partners move towards new standards to mitigate terrorism risk and protect critical infrastructure, the necessity for state-of-the-art tools and systems to mitigate those risks is paramount...