Recent extremist acts in Sri Lanka and New Zealand highlight the wide-ranging impacts wrought by violent acts. These threats and the risks they pose, are evolving and becoming less predictable but more tangible. And in an increasingly connected world, terrorist groups and active assailants have access to global platforms to extract maximum exposure and notoriety from their attacks on international targets.
Beyond emotional and physical damage, such incidents can interrupt business operations, lead to significant loss of revenue, and plummet confidence in a brand.
While the risks cannot be eliminated, real estate and hospitality organizations can take steps to reduce them, contain the damage caused to people and property, and accelerate recovery – even when their own premises are not damaged.
In this client alert, Marsh Asia’s Real Estate Leader, Edward Farrelly and Marsh Risk Consulting’s Alfred de Guzman discuss these risk mitigation steps, including:
Importantly, when it comes to risk finance options – minor or complete lack of physical damage can still result in large losses of revenue, due to proximity to other attacks and the destabilization these attacks bring to a city, country or region. It is important that organizations consider what protections they can put in place in such circumstances.