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II.Preparing for the Catastrophic EventA. Risk ManagementRisk management is defined as the identification, assessment, and prioritization of riskfollowed by coordinated and economical application of resources to minimize, monitor,and control the probability and/or impact of unfortunate events or to maximize therealization of opportunities. 5The first step in preparing for a catastrophic event is theidentification and assessment of such risk through a dedicated and proactive approachto risk management. Similarly, responding to a threat of disruption in businessoperations and services as a result of a catastrophic event begins with an effectivemanagement strategy.In a 2011 survey by Harvard Business Review Analytic Services sponsored by Zurich,the majority of surveyed business executives concluded that risk management hadbecome more important to their business over the past few years. 6According to thesurvey, 42% of businesses with 10,000 or more employees reported that they employeda Chief Risk Officer (“CRO”), compared with only 11% three years prior to the survey. 7The study found that businesses with a CRO do more advanced risk managementplanning than those without a CRO. 8Additionally, the presence of a CRO, or anindividual directly responsible for risk management who reported directly to the CEO,5 Risk management, WIKIPEDIA, http://en.wikipedia.org/wiki/Risk_management (last visited on Dec. 9,2014).6 HARV. BUS. REV. ANALYTIC SERVICES, HARV. BUS. REV., RISK MANAGEMENT IN A TIME OF GLOBALUNCERTAINTY 1 (2011).7 Id.8 Id. at 9.March 5, 2015 4 @ 3-5-2015 ALFA International6427256.3/SP/00009/0099/011215