Connecting the disaster dots: The benefits of enhanced collaboration between business continuity and risk management

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Abstract: This paper serves as a guide to how disaster recovery costs after a loss can potentially be reimbursed through the insurance claim process, and highlights how disaster preparation and response are viewed through the lens of risk management and insurance claims recovery.

Many organisations have both business continuity and risk management departments that, by and large, work independently. Following a significant business loss, however, such a siloed approach can leave many uncovered costs miscategorised as recoverable or, worse, completely miss an opportunity to recover claimable costs through the insurance claims recovery process. The implementation phase of business continuity processes and plans must include a component that considers how the mitigation spend will be potentially recovered or recouped through the insurance claims process.

This key component should be analysed and described in coordination between business continuity and risk management. The goal of more continued cross-functional dialogue among business continuity and risk management professionals is the key to complete financial recovery and insurance claim reimbursement.

Keywords: risk management, business resiliency, insurance claim preparation, business interruption, business continuity 

Frank Russo is a founder of Procor Solutions + Consulting, a national consulting firm offering expertise in risk management, disaster planning, claim preparation, construction claims, insurance appraisals and dispute resolutions.

Frank is a recognised thoughtleader on the topics of business resiliency and financial recovery from business interruption losses. Frank is an alumnus of Rutgers University, holds an Executive MBA from the Lubin School of Business at Pace University; a Construction Risk Insurance Specialist designation; an Associate in Risk Management designation; and is a verified Cyber Insurance Risk Manager. In August 2018, Frank received the ‘Innovator in Finance’ Award from FiNext.