The importance of sufficient business interruption planning can’t be emphasized enough, as demonstrated by the results of a study recently conducted by Zurich Financial Services Group and the U.K. Business Continuity Institute.

The study found that 85% of companies have experienced at least one supply chain disruption so far in 2011, up from 72% reported last year. The fact that this large of a majority reported a disruption only partially through the year is reason for pause to reflect on your own business’s interruption and contingency plans.

40% of the survey’s respondents reported that the cause of their business’s disruption originated from below their original supplier. This number demonstrates the need for planning that accounts for both the breadth and depth of your supply chain.

The cause of the reported business interruptions were mainly weather or catastrophe related. Here is a breakdown:

• Adverse weather contributed to 51% of the interruptions
• IT or telecommunications outages contributed to 41%
• transport network disruptions contributed to 21%
• Earthquakes and tsunamis contributed to 21%

Organizations in the financial services industry reported their most common source of interruption to be IT or telecommunications outages. Product quality incidents were the most common source of interruptions for manufacturing companies. Adverse weather most commonly affected companies in the retail and wholesale, IT and communications, transport and storage, and government sectors.

As a result of business interruptions, many parts of a company’s operations can be affected. 49% reported a loss of productivity as the primary consequence of their business’s interruption, while 38% noted an increase in the cost of working and 32% found that it led to loss of revenue, customer complaints and impaired service outcomes.

Consult us today to prepare your business’s contingency plans and protections for 2012.

Also see: Are You Covered in Case of a Business Interruption?