What is the impact of strategic, digital, and operational disruption on business?

3/20/2018

As recent events in Florida, Texas, and California clearly demonstrate, companies of all types and sizes can fall victim to natural disaster. Beyond major events like hurricanes and wildfires, operational disruptions can also include problems with suppliers or distributors, port closures, or facility shutdowns. Risks also come in the form of strategic disruption (which includes political risk, the impact of megatrends or new technology, or industry consolidation), and digital disruptions (such as cyber breaches or system downtime).

As part of the 4Q’17 Middle Market Indicator survey administered to more than 1,000 C-level executives in December 2017, the National Center for the Middle Market set out to better understand the prevalence and impact of different types of business disruptions among middle market companies and to create a comprehensive picture of the major risks companies face and their resilience to withstand those disruptions.

The survey was completed in the aftermath of Hurricanes Harvey and Irma and the northern California wildfires, and we oversampled in these areas to gain perspective from middle market business leaders recovering from recent natural disasters. At the same time, we asked about other categories of risk—strategic, digital, and other operational risk—to understand the impact of disruption on business, how prepared companies are to weather the various types of storms they encounter, and how quickly they recover from different challenges.

Download the report to uncover key findings along with a framework and additional resources companies can leverage to bolster their risk management capabilities.

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