NU Online News Service, June 2, 1:29 p.m. EDT
Organizations that ignore the threat of terrorism and do not plan for the possibility could face lengthy and expensive litigation in the aftermath of an event, according to an executive at Aon.
The comments of Craig Preston, executive director at Aon out of London, came as Aon unveiled its 2009 Terrorism Threat Map showing a shift in Islamic terrorist activity in the Middle East and Southern Asia, most notably in Pakistan, India, Afghanistan, Thailand and Nepal.
Aon's map indicates that the Taliban are responsible for an increased number of attacks in the world.
Concerning corporate preparation for an attack, Mr. Preston observed that following the 2001 destruction of the World Trade Center twin towers and the attacks last year in the city of Mumbai, India, organizations that are not employing risk management mitigation techniques where there is a terrorism threat risk serious legal consequences.
"Organizations are now much more conscious of their duty of care and corporate governance responsibilities," said Mr. Preston. "As a society becomes more litigious, those with risk management responsibility need to be seen to be doing all that is reasonable to protect their brand, assets and people against a terrorist attack."
He added that after the most high-profile events in New York and India, a terrorist attack could be viewed as a "foreseeable event" by litigants. Those who have not addressed the issue "could open themselves to very lengthy and damaging litigation charges" in the aftermath of an attack.
Mr. Preston's comments came during a conference call briefing today on Chicago-based insurance broker Aon's 2009 Terrorism Threat Map, which was produced in coordination with the security consulting firm Janusian.
The mitigation of risk is often done through the purchase of terrorism insurance to cover property damage, business interruption and, of increasing importance, legal liability, noted Mr. Preston.
Coverage capacity has increased slightly, he said, and rates have remained flat "depending upon profile and location."
However, he cautioned, no risk profile is complete without "effective counter-terrorism risk management measures that go beyond risk transfer. It requires a holistic approach."
In this respect, he mentioned that Aon has seen an increase in the number of organizations seeking advice to protect them in case of a terrorism event.
According to Aon's terrorism map briefing, there has been a re-emergence of traditional groups, such as the communist Shining Path in Peru and a revolutionary anarchist movement in Greece.
On the positive side, Mr. Preston commented that the counter-terrorism capability has increased in North America, Europe and Australia.
"The threat remains ever present," he said. "That none have taken place in the last couple of years suggests a more settled outlook." However, he indicated that this fact is not an indication that vigilance should be abandoned or that the threat has in any way diminished. Terrorist, he said, are still seeking targets.
A copy of Aon's 2009 Terrorism Threat Map can be requested at www.aon.com.
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