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Awareness about the need to protect businesses from the effects of hazards such as fires and flooding is on the rise, new research shows.
According to a report published by banking group Lloyds, an increasing number of companies are demonstrating adequate awareness of what they need to do to ensure that their firms are not too adversely affected by unforeseen circumstances.
The survey revealed that more than 70 per cent of businesses questioned said their company is now better prepared to manage business operational risks than they were two years ago.
Less than three per cent of the firms surveyed said that they were less prepared to cope with unforeseen circumstances than they were two years ago, showing an overwhelming awareness of the importance of contingency planning and risk management.
Adequate risk management planning can include investing in good quality fire resistant office safes and maintaining back up data for sensitive files.
Lloyds' findings showed that businesses are also demonstrating an increasing awareness of the risks posed by environmental and health hazards.
Pollution and environmental liability was found to be the top risk in the category of environmental and health risks, as companies begin to anticipate the potential high costs associated with rising levels of regulation.
Despite this increased awareness of environment issues, the report showed that risks involving natural hazards and longer term environmental issues such as climate change are still categorised as less important by board level executives.
As well as the risks posed by natural and man-made disasters, companies are also showing increasing anxiety about problems associated with their workforce.
The findings show that risk posed by talent and skills shortages has risen up the list to become one of the highest priorities for businesses.
Dr Richard Ward, chief executive of Lloyds, said that when it comes to risk management planning, firms need to "think the unthinkable" in order to identify and minimise their vulnerabilities.