Transportation keeps the economy moving. Nationally and globally, business relies on transport and transport systems at every level - be it transferring goods, transporting customers or staff commuting. The impact of large-scale disruption of transport infrastructures can be critical for national and global business so it is perhaps unsurprising that transport systems have long been viewed as targets for terrorists groups worldwide.
With the overwhelming global terrorist threat now coming from Islamist jihadist groups with a desire to inflict mass civilian casualties, transportation networks are now under greater threat of attack than ever before. Not only do these groups aim to hit major targets at times when they are likely to be the busiest, for example the London Underground at rush hour, but they are also willing to engage in suicide bombings, making them very unpredictable and harder to stop. Bob Whalley, Consulting Senior Fellow at the International Institute for Strategic Studies (IISS) and Former Director for Counter-Terrorism at the Home Office says:
"The threat from home-grown terrorism remains high, and, as terrorists have shown most violently in Madrid and London, mass transport remains a key target. The confluence of large volumes of individuals, the impossibility of completely securing them, and the subsequent societal disruption lends itself very conveniently to their purposes."
A report commissioned by Lloyd’s 360 Risk Project and produced by the IISS highlights the practical steps that business can take to help protect themselves from the risk of home-grown terrorist attacks. The report highlights the implementation of smart and sensitive human resources policies and decisions to invest in disadvantaged Islamic communities at home as two proactive steps that business can take. In terms of mitigating the impact on business from attacks on transport systems, Bob Whalley suggests the following:
"Business can insulate itself from the threat by ensuring that it has a good established and tested contact network with staff to alert them to any disruption as soon as possible. Establishing alternate work hubs, or facilitating staff's ability to work from home, will also help ensure that the disruption to business from a transportation shut-down can be kept to a minimum."
So what is the risk of getting caught up in an attack? The report concludes that whilst there is a relatively low probability of a direct terrorist strike against business interests or facilities, companies must not overlook the indirect risk. Business must therefore constantly monitor the threats, and use the wide range of resources available to better understand and manage the risks.
Moreover, the disruption and uncertainty caused by such attacks against transport systems causes a ripple effect throughout the business world, as shown by the attacks in Madrid and London. The report also examines case studies and considers lessons that can be learned. On 11 March 2004, a coordinated series of ten bombs exploded on a commuter train at the Atocha station in Madrid, killing 191 people. This was followed in July 2005 by an attack on transport systems in London which killed 52 commuters and in June 2007 by a failed attacked on Glasgow Airport. The immediate consequence of such these attacks is short-term economic chaos and a drop in equity market share prices, although they are generally quick to bounce back. However there is no doubting the huge disruption and uncertainly such attacks cause to the economy and in fact the Lloyd’s report highlights economic damage as one of the key aims of terrorist cells.
In a further examination of the threat to global and economic stability posed by attacks on transportation, Lloyd’s 360 Risk Project has produced a video called Keeping global transport moving. The video highlights the expertise available within the Lloyd’s market for those wanting to protect their business from the threat of terrorism. Richard Close-Smith, Executive Director at Willis Marine says in the video: “When it comes to insurance against war and terrorism, then most people turn to Lloyd’s because it is in Lloyd’s that you find a genuine appetite for risk.”
