Governance, Risk and Compliance

Three Causes of Business Interruption Every Company Should Be Aware Of

By Resolver Modified September 20, 2021

Companies take all sorts of measures to make their operations attractive and reach the widest number of people possible. They carefully test new products, do special research to identify new target markets and take special care to manage their reputation.

Understandably then, there is nothing more frustrating than a business interruption that is out of organizations’ control that actively prevents them from achieving their objectives. Here are three causes of business interruption of which firms need to be aware:

1. Wintry Weather Conditions

Although this pertains mainly to regions further up north, the winter can be particularly devastating to a broad number of companies. A snow storm can cause a power outage, shut down public transportation and otherwise effect a business’s ability to reach its customers and sell products or services. Even if it doesn’t prevent operations altogether, there is no question a winter storm can be a significant setback.

Southern states shouldn’t look past winter storms either. Major traffic arteries in Georgia were completely paralyzed by a mere two inches of snow last year, trapping thousands of drivers on highways in Atlanta and other nearby areas, NBC News reported.

2. Acts of Terrorism

Two years ago, the Boston Marathon bombing illustrated how devastating acts of terrorism can be. In addition to loss of life and other significant impacts, terrorism can also cause massive business interruptions. For example, when the bombers were discovered and engaged police in a firefight, the entire city was shut down to prevent the suspects from fleeing.

3. Cybercrime

Cybercrime is an ever-evolving risk category that many companies are finding difficult to contend with. At a basic level, digital attacks such as distributed denial-of-service attacks can completely shut down websites and prevent people from viewing them, costing the company in question sales until the site is back online. This is only the tip of the iceberg, however.

As Risk Management magazine noted, there is no limit to what cybercriminals have the potential to do – it’s not completely impossible for them to shut down local transportation or cause power outages through a complex attack.

Risk assessment and management might not be able to prevent all these causes of business interruption, but the right insurance policies can at least help organizations recover from these events. It’s crucial that organizations remember that the right insurance can play a pivotal role in successful risk management efforts.

Want to learn more about Resolver's software? Get A Free Demo

About the Author

Resolver Protects What Matters®. Over 1,000 of the world’s largest organizations use Resolver's cloud software to protect their employees, customers, supply chain, brand and shareholders.