Failing to properly consider business continuity management is costing UK firms more than £11 billion, it has been found.
Research by the Business Continuity Institute revealed that the equivalent of 0.8 per cent of the country's gross domestic product is being lost, as companies overlook risks.
Technical director at the body Lyndon Bird predicted that supply chain disruptions are likely to be the major cause of concern throughout this year and into 2010.
"In the current economic downturn, customers and suppliers will inevitably go out of business and it is vital that an organization understands its dependency on critical suppliers," he said, urging businesses to be aware of the impact that a lack of essential products would have.
Chief executive of the Financial Services Authority Hector Sants recently advised shareholders of companies to play an active part in risk management, noting that a lack of such strategies will harm long-term performance.
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