business interruption modeling

Business interruption modeling is a process used to estimate the potential financial impact if a company’s operations are disrupted due to events like natural disasters, accidents, or cyberattacks. It involves analyzing factors such as the location, industry, supply chain, and historical data to predict how long disruptions might last and how much revenue or profit could be lost. This helps businesses plan for risks, determine appropriate insurance coverage, and develop recovery strategies to minimize financial setbacks when disruptions occur.