Disaster Recovery Journal

Focus: Hurricane Sandy

Back to Business

A Dynamic Plan to Minimize Disaster Downtime

By BOB GAUDREAU

The year 2012 turned out to be one for the record books for the U.S. – and not in a good way. In a report prepared by London-based global reinsurance firm Aon Benfield, the U.S. endured two of the world’s costliest natural disasters, totaling a staggering $100 billion in economic losses. Damage from Hurricane Sandy resulted in $65 billion, and the year-long drought in the Midwest, which crippled the agricultural sector, totaled $35 billion in losses.

If recent history is a gauge it would appear there are a growing number of extreme natural disasters wreaking havoc on the global economy. Look to the earthquake and tsunami in Japan as a proof point of how a disaster can impact the delicate global supply chain.

According to the Insurance Institute for Business and Home Safety, about 25 percent of small businesses fail to reopen after a major disaster. Considering Hurricane Sandy affected more than 1 million businesses, it is plausible that thousands of companies may never re-open again. Having a dynamic recovery strategy could have made the difference in keeping a business afloat or having it fall victim to this historic storm.

Impact of Hurricane Sandy

Greater attention to the need for disaster preparedness occurred when Hurricane Sandy hit the tri-state area on Oct. 29, 2012. The widespread devastation in a densely populated business region created unprecedented challenges for the cities affected in New York, New Jersey, and Connecticut as well as the companies trying to find suitable places for employees to work.

With ground transportation compro-
mised, airports closed, limited gas supply
and prolonged power outages, executing
any type of workplace recovery plan was
full of obstacles.

Proactive Thinking

Given all of the issues today’s businesses are coping with – an uncertain economy, poor sales and an increase in global competition – prepping for a disaster may not be deemed urgent or necessary. While it may not be a top priority, many now-defunct businesses can confirm it takes just one incident to permanently shutter the doors of a company.

Of course, in order to keep a business moving, employees and management must be laser-focused on the day-to-day goals of the organization. However, when faced with the devastation and interruption caused by a fire, flood, hurricane, or man-made catastrophe, how a business approaches the disaster is sometimes as critical as having a plan at all.

With advancements in mobile technology and a workforce that is increasingly dispersed, putting together a workplace recovery program is no longer a one-solu-tion-fits-all approach. Like a fingerprint, no two businesses are alike. As a result, when creating a workplace recovery plan, each business has to match the plan to meet the needs of its employees, the business, and its customers. What organizations are now demanding is a more dynamic and fluid approach to workplace recovery. Businesses are looking for flexibility, broad accessibility, and more choice in terms of locations for its employees.

While unlikely, disasters do occur and companies’ productivity can sink, causing an enormous financial toll if businesses don’t have a robust plan to tackle the unthinkable.

Businesses with disaster recovery plans already in place prior to being affected are in a much better position to rebound, resume operations, and minimize disruption. Planning shouldn’t take place when a business is confronted with a disaster. To ensure a business isn’t susceptible to prolonged downtime, businesses should consider the following: