Posted by: olymponomics | February 17, 2012

Olympic risks to business

In a recent report, the insurers Chartis have highlighted the risks to businesses associated with the London Olympics this summer. It is hardly surprising, of course, than an insurer is warning businesses they might be under-insured, but the report raises some interest points about continuity and supply chain risks – for example with the potential for congestion on London’s roads and greater financial exposure due to increases in cash handling and stock. The problem of preparing organisations for all eventualities in complex systems is, as Perrow points out, that their processes tend to be opaque to outside observers such that their vulnerabilities are ‘incomprehensible’ at the time — while in hindsight catastrophic failures can seem predictable.

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