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Published: September 6, 2012

In his latest article for, Bill Freear, Pilgrims' Managing Director, addresses the issue of concentration risk for travellers, asking the question: Is a company barbecue in Basingstoke as risky as one in Baghdad?

“For investors, concentration risk is the risk they take on when they fail to diversify, investing too much in a single sector, country or financial instrument. In business continuity terms, it can mean production and recovery sites sharing a train service, an electricity grid or a flood plain and – significantly for this article on travel risk – it can mean the escalated risk to a company when its key decision makers or those with key skills gather together in an environment that would otherwise present a lower risk,” highlights Freear.

“Very senior people carry special risks: if two or three are lost at once in an accident or attack, the company could suffer special damage, either through the lack of total corporate firepower that results or perhaps because the CEO and the finance director share structural accountability at the top. In a small company, where three people owned it and there was manageable debt based on, say, personal mortgages, but no succession plan, the result could be the company simply being sold off.”

“A way to deal with this is to design a travel risk combination matrix. This is essentially a business continuity issue, the human and family factor notwithstanding and the risk assessment should be part of the business impact analysis that drives a business continuity plan…”

Points to be examined include:
• Travel threats and vulnerabilities to those threats (probability)
• Impact
• Outcomes

Read the full article…