According to the institute for Business and Home Safety, 25 percent of companies are unable to resume after a major disaster.
There’s a tendency to think that large scale disasters won’t happen to you or affect your business. The unfortunate reality is natural and man-made disasters can strike at any time and place. Natural disasters in New Zealand cost the insurance industry millions each year, with insurance being one of the biggest business issues to arise from the Christchurch earthquakes.
The aftermath of the recent earthquakes and flooding in Kaikoura and Wellington highlight the importance of quality risk management planning. All possible sources of loss need to be examined and careful contingency plans made. Here are four ways small businesses should plan for a natural disaster.
Insurance
Many small business feel insurance is an expense they cannot afford but it should be factored into every financial set up. Made sure your policy is up to date to cover all aspects of potential monetary loss. Small business owners should also consider business interruption insurance for closure to roads, airports and ports which may halt your business for a substantial amount of time.
Back Up All Your Files
Even with the security of cloud based software, it is highly recommended you back up your files on a regular basis. A company may not be able to reestablish itself without important financial and client databases. Should your computer get damaged in a disaster, you may lose many hours of valuable work and client information that could potentially be crippling to the recovery and future success of your company. CashManager makes file backup easy
https://cashmanager.io/assets/Documents/HelpCenter/Back%20up%20Data.pdf
Remote Working
An inaccessible office does not mean business can’t be resumed. Implement systems that can be accessed by employees from their home. Communicate with all staff what their expectations and responsibilities are. Set up a group discussion forum that all staff have access to and can securely share files and documents.
Emergency Response Plan
Regardless of the size of your business, all employees should know the correct procedures to follow in an emergency. Have a clear evacuation plan and numbers to call in an emergency. Follow up with communication to all employees to check on their wellbeing and ascertain what is happening next.
Catastrophic disasters are often unpredictable and the aftermath costly. A quality risk management plan will modify the disruption and assist in the recovery of business operations.