Disruptive events that halt production can have severe business consequences if not appropriately managed. Business interruption (BI) insurance offers firms a financial mechanism for managing their exposure to disruption risk. Firms can also avail of operational measures to manage the risk. In...

Disruptions that temporarily interrupt production pose a significant risk for manufacturing firms. To manage this risk firms can purchase interruption insurance and/or deploy operational measures such as storing inventory or taking preparedness actions that reduce the expected interruption...