ONLY half of businesses and other organisations have adequate plans in place to deal with emergencies such as severe weather or computer problems, according to a report published yesterday.

Most firms are “dangerously under-prepared” for a crisis, a study by the Chartered Management Institute (CMI) and the Cabinet Office suggested.

A survey of 900 businesses showed that nine out of 10 were hit by last December’s heavy snow, but fewer than half described extreme weather as a significant threat to their business.

Ruth Spellman, CMI chief executive, said: “Some business leaders have taken an ostrich approach to planning, simply burying their heads in the sand and hoping that they do not have to deal with the worst.

“Neglecting business planning is reckless in the extreme and it represents a huge failure of management in the UK.

“Just ask Eurostar, who were found to have no plans in place for the tunnel breakdown in December, which led to travel chaos for customers and a disaster for their reputation.

“Despite the pressures of the economic downturn, UK businesses have to appreciate that business continuity management is not a nice thing to have – it is crucial to business survival.

“Until UK managers have the time and skills they need to write, test and update these plans, and leaders give them the priority they deserve, this will remain a severe risk for the UK economy.”

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