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Value Chains, Global Terrorism, and the True Cost of Doing Business

At a cost, companies can adapt to the challenge

Gabriele Suder
Tue, 09/20/2016 - 11:35
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The costs of global terrorism on business go beyond the destruction caused in the attacks and actually impact the value of brands and supply chains for products, new research shows. It can give a competitive edge to some companies while destroying others.

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During the 15 years since the Sept. 11, 2001, terrorist attacks, terrorism and its tragic consequences have become transnational in nature and impact. Terrorism has moved from an unquantifiable uncertainty to a risk, with an ever-increasing frequency that has exceeded 70,000 attacks within the last 15 years.

Terrorism has also amplified in scale and scope. It claims more human lives and aims to immobilize societies and economies, if we let it. Our research dissects the direct and indirect impacts of terrorism of the past 15 years.

There have been 5,367 so-called “effective” attacks recorded by the Global Terrorism Database since 2001 that have directly targeted businesses, sometimes with the loss of human life. This equals, on average, 1.1 terrorist attacks each day on business by what is recorded as “global terrorism.”

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