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From the viewpoint of the helicopter whirling through Los Angeles' twilight skies, the scene below was one of utter, shocking devastation. Several city blocks were burning furiously, the glare from the fires illuminating the darkening streets. As massive billows of smoke spewed from these conflagrations, gangs of youths marauded through the streets, smashing the windows of buildings not yet in name, then rushing inside to cart off any valuables that lay unattended. The fury unleashed by the rioting went unabated for several days, and when it was over, entire sections of the city lay in charred ruins.
The Los Angeles riots, which caused more than $775 million in property damage, proved that riots and other types of civil unrest can pose as great a risk to businesses as natural disasters such as earthquakes, hurricanes and floods. As a result, many businesses are busy reviewing their readiness for these violent and destructive calamities. For these companies, coordinating loss control strategies with response and recovery plans can mean the difference between their survival and ultimate collapse.
Although many of the response strategies that businesses employ for natural disasters can also be used as a protection against civil disturbances, there are some important differences between these events. For example, although both types of crisis can overwhelm local law enforcement and fire fighting authorities and prevent them from responding promptly, the Los Angeles riots demonstrated that when a civil disturbance erupts, the unrest and violent disorder can continue for days; as a result, a prolonged period of time can pass before authorities can get control of the situation and begin recovery actions. Therefore, in contingency planning for civil unrest, businesses should assume that emergency responses by local authorities will not necessarily be timely, and in some cases will not be available at all.
The unique nature of civil disturbances demonstrates that risk management planning must be undertaken before an incident occurs. Although special loss control measures can be employed to limit physical damage to buildings and facilities, these measures should be used in tandem with crisis response and business recovery procedures. In their effort to protect the company, risk managers should use these techniques to minimize damage to company facilities, to protect employees and customers during the crisis, and...