A natural disaster can cripple a business for days, months or years, that is if it survives the wrath of mother nature. Trdinoo shares with you, how to manage security planning in case of a natural disaster for your business to survive.
Be it a typhoon in Hong Kong or hurricanes in U.S., earthquakes in Japan, floods in Europe, drought in India, a natural disaster can quickly cause severe damage. Due to climate change, natural disasters are not a black swan event anymore. We are going to witness it grow, where ever we live in the world. Companies and entrepreneurs today have to calculate the risk of natural disaster and manage the impact it can have on their businesses.
Find How Natural Disasters Can Affect Your Business
Every business should do a risk assessment on impact of a natural disasters on its businesses. Evaluate possible natural disasters that may affect your business and its operations. Determine the probability of a disaster occurring and its likely impact.
For both the short term and longer, estimate the revenue that may be lost if disaster strikes. Identify the critical functions of your business that get affected like, damage and production loss, losing orders & market share, supply chain troubles, below expected sales, dissatisfied customers, increased prices or even the disruption in demand for your product of service.
Identify expenses that must be paid even if a natural disaster strikes. Like,
- Interest and Loans
- Rent for Buildings
- Bills for services like Internet & phone.
- Salary for your Employees
- Penalty or Damage Fees to Clients
These payments may still need to be made even after a disaster strikes your business.
Prepare for Loss Prevention from Natural Disaster
Keep emergency contact information handy and in a safe place. Back up all of your critical data and keep a copy at one or more other safe locations. If you have not subscribed to a cloud service, use one to store all your data for a quick recover from a natural disaster.
Protect your assets to survive through the natural disasters. Implement risk mitigation construction techniques for your building, office and warehouses. Rent or build facilities that may withstand the forces of a hurricane or an earthquake, or locate on sites less prone to flooding.
If you have received warning of potential threat, take precautions to move and secure your goods to a safe location. Take time to plan evacuation routes and exits from your facility and mark them. Install proper emergency lighting to help show the way in case of fire or power failure.
Protect Your Business from Disasters
Consider any steps that could protect your business from natural disasters. Insure against losses to your business resulting from natural disasters. Property insurance may insure against some damage to property. Take medical & life insurance that provide cover to treatment of injuries to employees or protect their family in case of any worst situation. Business interruption insurance may cover certain expenses if you are unable to operate your small business due to a natural disaster.
Monitor impending or approaching potential natural disasters, where possible. Take appropriate steps to keep your employees and yourself safe. Communicate your business plans for a natural disaster with your employees. Consider running a disaster drill to put your plan to the test. Never put your own or others’ safety at risk.
Make a Contingency Plan for Disaster Recovery
As a business will need a contingency plan for recovering from natural disaster. Having a backup plan in place, such as an alternate work site. If your business has more than one location, consider whether operations could be redirected to other locations if a natural disaster strikes at one location.
Proper insurance and disaster savings, can make a big difference in how the business survives the disaster.
Maintain a list of key suppliers, creditors, customers, and employees you need to contact about the state of your operation.
Running Business Successfully After a Natural Disaster
If your business has been significantly affected by a natural disaster, you should consider the viability of your business. While many businesses reopen and operate successfully after a natural disaster, some do not survive.
When assessing the viability of your business, consider:
- Do you have the finance needed to reopen your business?
- Do you want to continue running your business?
- How severely has the natural disaster affected you, your employees, your local community and local infrastructure?
- Has the market for your products or services changed, decreased or increased?
It is also a good idea to review your previous operations and identify any areas that you can improve on.
Hire an Emergency & Safety Manager
Emergency managers are responsible for leading their staff, citizens, media and partners through disasters and emergency situations. When disasters strike, panic and confusion can ensue, and it’s up to disaster managers to set a good example, and remain diligent and calm at all times. One critical skill that emergency managers can use to navigate an emergency is proper and effective communication.
Here is an Interesting Infographic, from Eastern Kentucky University on top natural disasters that threaten businesses.
Stay Motivated
A natural disaster can affect your business in many ways. Even you might start to lose confidence, but don’t give up just yet. Remember, When the going gets tough, the tough gets going. Inspire your employees, sell hope along with your product to your customers and the local community who have been significantly affected by the natural disaster as well.
When the going gets tough, the tough gets going
Assessing the impact, a natural disaster has had on your business will help you put a plan in place so you can clean-up efficiently and begin to rebuild your business. Time will change. So, Never Give up.
Do you know how to survive a natural disaster as a business? Share them on Trdinoo for others to learn and please share us with your friends and network.
