UK firms 'unprepared for crisis'

The BSI has urged firms to prepare for potential disasters

Many British companies are putting themselves at risk by failing to prepare contingency plans to deal with a crisis, according to a report.

Almost 45% are unprepared to deal with terror attacks or natural disasters, the British Standards Institute said.

A further 25% could not cope with major IT problems, its report suggested.

The BSI said the results of its poll of 100 FTSE 250 firms was "alarming", particularly after Hurricane Katrina and the London terror attacks.

It added that in the wake of a recent strike by workers at airline caterer Gate Gourmet - and the knock-on effect that had at British Airways - it was surprised to find that 28% of companies did not feel ready to cope with supply chain problems.

"The FTSE 250 has a market value of over £200bn, and it is alarming that such a large proportion of businesses ... do not feel adequately prepared for major issues such as IT failure or supply chain problems," said BSI director Mike Low.

"It is vital that the hard core of businesses without adequate provision put appropriate measures in place to protect themselves as early as possible."