Managing Security Risks During Labor Disputes

Every company with union workers faces the risk of a labor dispute. Identifying any business risks and then managing them is a priority for executive decision-makers who must ensure that the company delivers its promises to stockholders, customers, and employees. The process is well defined in business terms:

• Risk identification, including assessing and tracking existing risks and identifying new ones;
• Risk assessment, including charting probability and consequences;
• Risk prioritization, including decisions to accept, avoid, control, transfer or monitor the risk; and
• Risk mitigation, including planning and implementing strategies for handling medium- to high- risk events.

When this risk involves labor disputes, the stakes are high. The potential for disruption of operations, lost customers,and damage to the corporate brand cannot be overlooked. Without a well-defined strategy on how the company will function during a labor dispute, the event can result in business disruptions that threaten to shut down daily operations, potentially forever.