Tips on Protecting Your Business from a Natural Disaster

If your company experiences a disaster, do you have an adequate recovery plan in place? According to the Contingency Planning Research Strategic Corporation, 43% of U.S companies that experience a natural or man-made disaster never re-open and another 29% of businesses will close within 2 years. According to a Touche Ross study, the survival rate for a company with no disaster recovery plan in place is less than 10%. Here are some tips to get your business in shape and prepared for any disaster.

A disaster recovery plan should be based on three essential components:

Human Resources – Your employees are your most vital asset. Consider their safety during a natural disaster, as well as the personnel issues that follow a disaster. Ask these key questions:

• How will your employees find safe shelter during a disaster?
• How will you maintain contact with your employees in the aftermath?
• Have you fully and properly instructed all of your personnel about your disaster recovery plan?
• Have you assigned key personnel to form a crisis management team? Have they coordinated with all departments?
• Have you identified employees to assume central roles to back up your key personnel if they are unable to resume their duties?
• Do you have off-site copies of the most current contact numbers for all your employees, clients, suppliers and vendors? Are they updated on a regular basis?

Physical Resources – Your physical assets, including your building, furniture and equipment, are things you may not be able to easily replace after a disaster. Here are some vital questions you should ask:

• Are there any steps you can take to protect your building and equipment?
• Do you have adequate emergency supplies on hand to see you through at least the first three days of a disaster?
• How well will your building, inventory and assets fare when subject to various kinds of disasters such as a flood, tornado, and hurricane or fire?
• Who will perform a damage assessment afterward to determine what can be salvaged?
• If computer and data is compromised, do you have access to an off-site backup system? How often do you need to backup your data and systems to remain functional after a disaster?
• What about the security and protection of your most crucial documents, legal papers and records?
• What type of facility will you need to resume operations? Where should it be located?
• Have you identified a list of companies or suppliers to replace key components and equipment? How should you prioritize the replacement of machinery and equipment?

Business Continuity – Examine how you might get yourself up and running again by asking these questions:

• Is my insurance, especially business interruption insurance, adequate to cover my needs?
• Where can I set up an alternative command center to coordinate disaster recovery?
• What alternatives do I have if my suppliers are closed?
• What will I have to do for my customers in the event of a disaster?
• What cash flow do I have available for contingency expenses?

Consider setting up different teams assigned to perform various and specialized tasks after a disaster, such as:

• Public Relations – Field inquiries and make public announcements.
• IT & Data Recovery – Responsible for hardware, software and systems administration.
• Client and Supplier Communications – Keep in touch with vendors and key clients to advise them of your status.
• Administrations Team – Look after transportation, logistics, emergency transportation, survival gear, and human resources.
• Post-Disaster Recovery – Manage post-disaster recovery by facilitating the set up of business as soon as possible.

Disasters can strike anywhere or anytime. Good preparation and communication in the aftermath of a disaster is central to getting your company up and running quickly. Don’t become a part of the statistics – protect your business before it’s too late.