Implications of Major Material Damage incidents The Plan''

1
Implications of Major Material Damage incidents -
The Plan..

• Introduction
• GlaxoSmithKline - a cameo piece..
• The Lesson
• The End

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The Introduction

• About me
• My department
• My company

3
The Implications of Major Material Damage
incidents

• Glaxowellcome Loss experience
• Luck or hard work?
• The carrot and stick approach...

4
Glaxowellcome fire experience

• 2 claims above the global policy excess over the
  last 18 years - good practice or great deductible
  level setting?
• The most recent in Cairo, Egypt..
• Last year.

5
Cairo - the circumstances

• A throw away cigarette butt
• A contract security guard
• A disused administration building
• Inappropriate temporary storage

6
Probability versus Consequence
Business Continuity Planning...
The continuing focus on fire protection
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Whats Major

• This is a question of individual risk tolerance -
  some industries cannot contemplate any form of
  interruption to the business , some can work off
  stock , others can absorb total individual
  failure.

8
Waste

• Physical asset damage
• Injury and death
• Unemployment
• Criminal prosecution

• In the billions p.a.
• direct and indirect effect
• direct and indirect
• under the HASAW Act

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The Impact

• Can influence corporate standards and behaviour
• highlights the importance of effective incident
  response
• may generate local or national legislation
• Stimulates legal activity
• Insurance market ( over) reaction
• Corporate reputation - negative impact on a
  companies value
• Enhanced risk awareness

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The Recovery
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So far so good?.

• You thought the problem was solely in your own
  back yard?
• Think Again, Think ERICSSON!!!

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The lessons to be learnt

• The importance of responding well
• The need for significant levels of automatic
  fixed fire protection
• Know your own exposures
• Learn from others mistakes

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Reasons (not) to be cheerful

• 43 of businesses that suffer a major loss never
  resume business. Only 23 recover fully, and 28
  recover but go out of business within three years
  from the loss
• NFPA Fire Journal

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Other Lessons

• Dont have any incidents
• Dont become an expert in them
• buy lots of D O cover
• If you sell, beware of insider trading rules..