How Does Your Business Measure Up?
By Dirk J. Duchscherer, MS, CSP, ARM, NB
Risk Control Manager, InterWest Insurance Services, Inc.
Tragic and unfortunate disasters such as Hurricanes Hugo and Katrina, California Loma Prieta Earthquake, and New York City’s
9-11 World Trade Centers building collapses caused severe loss of life, countless devastated and bankrupt businesses, immeasurable property damage, and unimaginable environmental pollution and contamination.
Therefore based on recent history, for any business to survive a natural catastrophe or disaster such as fire, earthquake, explosion, flood, bombing, hurricane, sabotage, etc. a formalized Disaster Preparedness and Recovery Program needs to be developed and implemented. Failing to do so could put your company “OUT OF BUSINESS”.
To assist businesses in preparation and recovery for natural catastrophes and disasters, typical exposures and hazards need to be evaluated so an appropriate Disaster Preparedness and Recovery Program can be formalized and implemented.
Typical exposures can include the following:
- Employee/Public Sabotage
- Flood
- Terrorist Attack
- Explosion/Building Collapse
- Earthquake
- Hurricane
- Power Outage
Typical hazards can include the following:
- Building collapse resulting in loss of life, property damage, utilities, and business interruption
- Sabotage causing business and operating systems loss of revenue, customers, suppliers, and company “good will/reputation”
- Flood and hurricane resulting in environmental contamination, mold, loss of buildings, vehicles, contents, vital records, operations, etc.
- Terrorist attack causing economic loss, increased legal liability and insurance premiums, loss of key personnel and customers, etc.
Once your business exposures and hazards have been evaluated, your Disaster Preparedness and Recovery Program needs to be developed and implemented and include at least the following key elements:
- Top management commitment
- Formalized safety policy supported by top management
- Established planning committee
- Assignment of job duties and responsibilities
- Conduct comprehensive risk assessment
- Determine priorities for continued operations
- Establish recovery strategies
- Execute data collection
- Formalize and implement written plan
By evaluating your company’s exposures and hazards and implementing a formalized Disaster Preparedness and Recovery Program BEFORE an unplanned natural catastrophe or disaster should occur, significantly increases your business’s probability of continued operations and survival.
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