Western Australian businesses are not immune from major security risks and need to be properly prepared for an incident affecting them such as a terrorist attack or a disease pandemic, says the Chamber of Commerce and Industry of WA.
Western Australian businesses are not immune from major security risks and need to be properly prepared for an incident affecting them such as a terrorist attack or a disease pandemic, says the Chamber of Commerce and Industry of WA.
In a discussion paper on security issues launched today by Federal Justice and Customs Minister Senator Chris Ellison, the Chamber says firms need to think about the potential impact that a major catastrophe could have on their operations and establish a business continuity plan.
CCI director occupational health and safety Anne Bellamy said that in today's world Australian businesses faced a variety of security threats ranging from product sabotage and cyber attack to natural disasters and terrorism.
She said business could be disrupted, damaged or destroyed by such an event and they needed to have plans in place that were beyond the scope of traditional risk management strategies.
"Since September 11, the federal and state governments have shown a heightened consciousness of the issues and instituted a number of security measures. However, their planning mainly concerns essential and emergency services and does not extend to how we ensure business continuity in the event of a disaster", she said.
Of growing concern was the potential for global security risks such as terrorism, a disease pandemic and trans-national crime.
Terrorism, in particular, was unpredictable and Australia had limited experience of it. A bomb blast could see a business area closed for many days, requiring managers to respond to a range of operational challenges. Service businesses and small firms could go to the wall if cut off from trading for too long.
Increasing dependency on the information economy also made Australia vulnerable to cyber terrorism. An example was the contamination of some Queensland waterways in 2000 when control of a sewage pumping station was seized by remote radio transmission.
The CCI discussion paper identified a gap in federal and state regulations which allowed the importation of pathogens used in biological weapons. It said there was no legislation that directly addressed the security of biological agents in Australia, only some related regulations which were safety, not security, focused.
The paper examined Western Australia's preparedness for an influenza or bird flu pandemic, the risk of which was low - although health authorities believed it was inevitable.
For business, it said the major impact was likely to be staff absenteeism, and business continuity plans would be needed to address maintenance of critical business activities and risk of infection to employees and visitors to the workplace.
Workers' compensation was unlikely to be available and insurance brokers were warning businesses to assess their risks and create contingency plans as insurance coverage appeared to be limited.
The paper said business continuity planning was important for firms of all sizes and should be an integral element of an organisation's risk management strategy.
Assessments needed to consider the direct and indirect costs if impacted by a disaster - costs such as loss of market share, brand loyalty and business reputation, and legal liabilities which could arise.
