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‘Insuring’ Operational Resiliency

Why do businesses purchase disaster insurance?

Because they need to mitigate the impact that disasters might have on their operations.  Businesses can generally weather sales cycles, personnel issues, etc.  but anything that directly impacts its revenue stream must immediately be addressed.  In short, they need to maintain business continuity.

Satellite transmission and video distribution businesses are no different.  They must spend capital to avoid or decrease the impact of problems that are beyond their control.  This is typically done via ‘self-insurance’ and can pay for itself many times over by purchasing excess equipment or emergency capacity.  For many commercially supported networks, the lost of revenue from even a single missed commercial segment can approach the capital needed to avoid the loss in the first place.

But how does your company most intelligently apply this capital?

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