Released on: December 4, 2007, 11:10 pm

Press Release Author: Alexandra Lewis

Industry:

Press Release Summary: UK businesses should be preparing for what could be the
riskiest year yet, according to leading insurance broker and risk management
consultant Aon. In its 2007 Risk Report published today, Aon warns senior management
to take the lead in stepping up their business continuity plans in the face of major
risk challenges.

Press Release Body: UK businesses should be preparing for what could be the riskiest
year yet, according to leading insurance broker and risk management consultant Aon.
In its 2007 Risk Report published today, Aon warns senior management to take the
lead in stepping up their business continuity plans in the face of major risk
challenges.

Outlining the most prominent risks in 2007 from environmental liability to
pandemics, the report underlines the growing importance of the single process that
can mean the difference between business survival and collapse: business continuity
management (BCM).

Despite such risky times, the report explains that some companies continue to
neglect BCM as senior management do not think it warrants their time. Hugh Leighton,
risk consultant - director at Aon, comments: "The main reason some companies are
still holding back from BCM is that establishing an effective programme requires the
most precious resource of all, namely senior management time, while appearing to
yield little in the way of return should the disaster never strike. If ever there
was a false economy, this is it."

Aon notes a tendency for BCM to be viewed simply as insurance planning, but
emphasises that it is a management process designed to understand what could bring a
business down. As such, BCM should be at the top of the boardroom agenda for all UK
businesses.

Management need to recognise how BCM can help prepare for the following two major
risks in 2007, as highlighted in the report:

* Pandemics: as the deadly H5N1 surfaces in the UK, avian flu is not insurable
for most businesses but must be managed in other ways. With employees at risk
from illness, business continuity plans will help to protect the business while
this essential asset is under attack.
* Network risks: IT security for data systems is a blind spot for many
companies, but they need to focus on protecting themselves from the threat of
fraud or data loss, for example, as a result of increasingly sophisticated cyber
criminals or technological disruptions. Ensuring service continuity in the event
of a crisis means detailed planning and business continuity management.

While it is tempting to anticipate major global disasters as being the potential
cause for such a disruption, the reality can be more mundane. BCM can help a company
to avoid a catastrophic loss of revenue or market share and survive anything from an
outbreak of avian flu to a fire next door.

Hugh, also a member of the British Standards Institute's BCM technical standards
committee, continued: "BCM is becoming increasingly recognised as a key ingredient
of good corporate governance. Part One of the British Standard BS25999 was published
in November 2006, creating a code of practice. Now Part Two is scheduled for
mid-2007 and a certification scheme is on the horizon. If business fatality was not
enough to spur management into action, they may soon have even stronger drivers to
address BCM."

The report also highlights the following risks at the top of the agenda in 2007:

* Directors & officers liability: though there were fewer court actions against
directors in 2006, there may be turbulent waters beneath the surface with a rise
in notifications under D&O policies. Directors need to make sure they have the
optimum level of protection.
* Emerging markets: as the appetite for M&A in new markets continues to grow,
companies must examine the challenges of such investments, particularly cultural
differences.
* Environmental liability: as new regulations start to bite in Europe, companies
must re-visit their insurance needs and internal practices to ensure they are
not caught out.

Energy prices: though prices have dropped in the early part of 2007, energy
insecurity is rising. With time to prepare for inevitable shortages - how can
businesses safeguard their supply and prepare for the 'energy crunch'?high
value home insurance

Request a printed copy of the Risk Report.

Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on
brokerage revenues and voted best insurance intermediary, offering classic car
insurance, high
value home contents insurance, entertainment and media insurance and
construction site insurance.


Web Site: http://www.privateclients.aon.co.uk/privateclients/microsites/household/

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