Canadian business leaders see the United States as having twice Canada’s likelihood of experiencing an attack in the next twelve months that is more devastating than September’s attack on the World Trade Center. As shown in the accompanying interview schedule, Canadian business leaders give the United States a 39.1% probability of an attack during the next twelve months that is more severe than that against the WTC. The probability of a corresponding attack on Canada is 19.5%.

The much lower perceived likelihood of an attack on Canada may help explain why business leaders feel that terrorist contingency planning is vital for companies to undertake while reporting that few companies actually undertake such planning. Many business leaders also feel that firms that are small and especially if located outside Canada’s major three cities are less likely to suffer the direct experience of terrorism. Furthermore, many feel that the indirect economic impact on Canada of terrorist attacks on U.S. targets is a much more serious threat to Canadian economic well-being than economic damage by potential attacks on Canada.

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