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Social Unrest

Understanding riots and their impact on businesses

Riots have been at an all-time high around the world. From riots in Sri Lanka to protests and violence in Ecuador, South America, risks are certainly increasing day by day. India is not far behind either. According to MHA, India witnessed as many as 2,76,000 riots between 2016 and 2020, out of which the major riots that had the most impact were religious riots. The data also showed that riots have been increasing significantly since 2019 and demonstrations have risen by nearly 250% in 2020.

Understanding riots and their impact on businesses

Riots are on the rise and one of the major causes of business disruption across the world.

Riots are civil outbreaks where a group of people acts violently in public, vandalizing and damaging public property and causing disturbances to property and authorities.

They are the result of grievances and disagreements. Some of the riots have occurred due to oppression, poor living conditions, conflicts between two groups, and dissatisfaction with the law.

Riots have been at an all-time high around the world. From riots in Sri Lanka to protests and violence in Ecuador, South America, risks are certainly increasing day by day. India is not far behind either. According to MHA, India witnessed as many as 2,76,000 riots between 2016 and 2020, out of which the major riots that had the most impact were religious riots. The data also showed that riots have been increasing significantly since 2019 and demonstrations have risen by nearly 250% in 2020.

According to Wikipedia, the US Commission on International Religious Freedom classified India as Tier 2 in persecuting religious minorities, the same as that of Iraq and Egypt.

The impact of riots on the economy

Riots have a huge impact on the economy. During riots, people damage property, which includes burning buildings, setting property on fire, stealing, and smashing windows. 

And another impact is caused by people not working. When people are rioting, they do not work, and the shops and businesses in the area of riots are also forced to stop their operations. 

Investment and tourism are also impacted during riots. Investors are skeptical and scared to put money into businesses during times like this, and tourists also avoid going to destinations prone to riots or currently having riots.

Impact of riots on operations

 

 As per the Institute for Economics and Peace, the economy suffered a loss of 15 trillion dollars due to violence. 

 

Riots often result in roadblocks and wide crowds, which lead to transport disruptions. There is also property damage that cannot be ruled out. Looting, vandalism, and arson are common during riots.

Impact of riots on travel and logistics

  •  communication disruptions and social media blockouts. 
  • could cause traffic and delivery delays. 
  • Curfews might be implemented in certain areas. 
  • damage to roads or airports.
  • Protests may also turn violent, anyone can get caught in the crossfire. 
  • The law may react in a heavy manner, causing injuries to bystanders. 
  • Looting and vandalism in warehouses or other shops

How to cope

  • Be aware and alert about recent news and notifications.You need to be up to date on the latest happenings and news.Communicating the information to the employees is also important to ensure employee safety. Make sure they are safe.

 

  • Be prepared in advance. Ask employees to stay alert and brief your security personnel or staff about the situation in advance. Test all the security systems in advance and check the notification system with the alarm companies.

 

  • Have a risk management system. Have a proper plan for dealing with a crisis like this. A risk management plan helps to mitigate or prevent risks in an organized manner. Decide in advance on the necessary course of action and find an alternative mode or area for running operations temporarily.

Our product can assist you 

Lythouse risk management solution.

Information is an important part that helps in mitigating risks during incidents like this. As the incident unfolds, analysis of the situation and sending relevant alerts and information to the stakeholders can help them in implementing proper measures. 

    1. Intelligent Alert system to notify you of all relevant incidents for your company and helps you monitor the incidents as they unfold.
    2. Tracks your employees, places, and property that might be affected.
    3. Recognizes additional events related to the original alert
    4. Reach out to employees quickly with our multi-channel communication software to ensure the safety of all employees.
    5. Track in real time the employees who need help. 
    6. Get incident reports, which will help you with better decision-making and improve the response time.

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