Chemical

With facilities, suppliers, and end users located in severe weather prone regions around the globe and exposed to many other threats, chemical companies face the following primary areas of risk:

• Property: Substantial losses within the industry are often attributed to risks such as: physical damage to plants and buildings; business interruption due to fires, explosions, vapor cloud explosions (VCE), machinery breakdowns, and natural catastrophes (hurricanes, wind, storm surge, flood); and supply chain and business continuity disruptions.
• Liability: These risks include third-party bodily injury and property damage to premises and automobiles. Other relevant risks are product liability/recall, transportation, environmental, and employee safety/occupational injuries.
• Cybersecurity and criminal activities: Malicious digital attacks or the actions of unknowing employees, contractors, or vendors can lead to information theft and operational disruption. Controls related to both areas of vulnerability, including their consequences such as the accidental release of hazardous materials, are a critical component of chemical industry risk management.

When working with hazardous materials and sensitive data, it’s important to account for all three threats to support a comprehensive approach to risk management. Recognizing and addressing emerging threats will help mitigate the financial, operational, and human impacts related to these adverse events.