A video of the first part of an address by Dr. John Vargo from the UC branch of Resilient Organisations, at the 2012 Seismics and the City forum. The talk covers case studies from the Canterbury Earthquakes, which shed light on the ingredients of a resilient organisational culture and best business practices for enhancing resilience.
A video of the second part of an address by Dr. John Vargo from the UC branch of Resilient Organisations, at the 2012 Seismics and the City forum. The talk covers case studies from the Canterbury Earthquakes, which shed light on the ingredients of a resilient organisational culture and best business practices for enhancing resilience.
A study by Canterbury University shows businesses have withstood the 7-point-one-magnitude Canterbury earthquake well.
A presentation by Associate Professor John Vargo (Department of Accounting and Information Systems, and Resilient Organisations Research Group) on "Organisational Resilience in Canterbury: Yesterday, Today and Tomorrow".
We examine the role of business interruption insurance in business recovery following the Christchurch earthquake in 2011 in the short- and medium-term. In the short-term analysis, we ask whether insurance increases the likelihood of business survival in the aftermath of a disaster. We find only weak evidence that those firms that had incurred damage, but were covered by business interruption insurance, had higher likelihood of survival post-quake compared with those firms that did not have insurance. This absence of evidence may reflect the high degree of uncertainty in the months following the 2011 earthquake and the multiplicity of severe aftershocks. For the medium-term, our results show a more explicit role for insurance in the aftermath of a disaster. Firms with business interruption insurance have a higher probability of increasing productivity and improved performance following a catastrophe. Furthermore, our results show that those organisations that receive prompt and full payments of their claims have a better recovery, in terms of profitability and a subjective ‘”better off” measure’ than those that had protracted or inadequate claim payments (less than 80% of the claim paid within 2.5 years). Interestingly, the latter group does worse than those organisations that had damage but no insurance coverage. This analysis strongly indicates the importance not only of good insurance coverage, but of an insurance system that also delivers prompt claim payments. As a first paper attempting to empirically identify a causal effect of insurance on business recovery, we also emphasize some caveats to our analysis.