Preparing for Civil Unrest: A Business Guide
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The specter of civil unrest is becoming a more frequent and disruptive force in our everyday lives. As our political landscape fractures and social tensions escalate, individuals and businesses must now, more than ever, prepare for the unexpected to safeguard their operations and ensure the security and safety of their assets and employees.
Historical Context and Recent Examples
Globally, civil unrest has been a persistent issue driven by political, social, and economic factors.
In the United States, recent incidents such as the protests following George Floyd’s death in 2020, the unrest surrounding the 2020 presidential election, and the Israel-Hamas conflict highlight a volatile environment. These events underscore the potential for disruption and the necessity for businesses to be prepared.
A recent Marist poll indicates that 47% of Americans believe there is a likelihood of a civil war in their lifetime, highlighting the growing concern.
In recent French history, civil unrest began with the "Yellow Vest" movement in late 2018, initially protesting fuel taxes and economic inequality. The movement continued into 2020 and has since evolved to address broader issues such as police violence, labor reforms, and the government's handling of the COVID-19 pandemic.
Between December 2022 and January 2023, Peru experienced significant unrest due to political instability and economic issues. Protests led to substantial damage to infrastructure and significant disruptions to businesses.
In Iran, protests initially sparked by socioeconomic issues and environmental concerns evolved into broader anti-government demonstrations from 2022 to 2023. The government's policies have fueled further discontent, leading to ongoing unrest across the country.
These events highlight the increasing frequency and intensity of civil unrest worldwide. The trend suggests that governments and businesses must be increasingly vigilant and prepared to address and mitigate the impacts of such events.
Factors Contributing to Civil Unrest
Political divisions and heated rhetoric can exacerbate tensions, leading to civil unrest. Socioeconomic inequalities and historical grievances also play significant roles. Understanding these factors helps businesses anticipate potential flashpoints and develop strategies to mitigate their impact.
Civil Unrest's Impact on Businesses
During the George Floyd protests, businesses across the United States faced an estimated $1-2 billion in insured losses, making it the most expensive civil disturbance in U.S. history
In Peru, the protests between December 2022 and January 2023 led to an estimated $1.3 billion in economic losses due to significant damage to infrastructure and disruptions to businesses
In France, the Yellow Vest protests and subsequent demonstrations, such as those over pension reforms in 2023, have caused over €1 billion in economic disruption. These events have led to significant operational halts in various sectors and extensive clashes with law enforcement. The financial impact includes extensive property damage and prolonged strikes affecting businesses nationwide.
Looking forward, the risks remain high. A report by Maplecroft’s Civil Unrest Index indicated that 101 out of 198 countries saw an increase in civil unrest risks in the last quarter of 2022 alone. The same report suggests that as socioeconomic pressures build, the frequency and severity of protests are expected to rise, potentially leading to even greater economic losses for businesses globally.
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For businesses, these disruptions not only mean immediate financial losses but also long-term impacts such as diminished customer trust, increased insurance premiums, and potential relocations to avoid future risks. According to the Insurance Information Institute, civil unrest can significantly impact business continuity and resilience, with small businesses being particularly vulnerable due to their limited resources to recover from such events.
Preparing for Civil Unrest
To effectively prepare for civil unrest, businesses should focus on several key areas:
Join Our Webinar for More Information
To learn more about how to protect your business and ensure the safety of your employees during times of civil unrest, join us for a webinar on July 25th. We will cover:
For further information and comprehensive security assessments, businesses can turn to TAL Global. Staying informed and prepared is essential for protecting your business and ensuring its resilience in the face of civil unrest.
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