The threat of a hurricane or a mudslide or even a nuclear disaster is more real than many people may realize. In the event that the worst case scenario comes to life, will your organization be able to weather the storm? One in four cannot and will never re-open their doors after closing them in an emergency situation.
How Disasters Affect Companies
Flooding in a building or fires in a warehouse may seem like the most visible of threats to an organization or business, but there are many other ways that a natural disaster can affect your productivity. Damage to the resources and materials needed for consumption or sales will cripple a business, while any harm to capital will keep the transfer of assets to a minimum.
Secondary Concerns
Even if your headquarters can avoid damage, indirect means of harm can occur. Not all employees may be able to work, power outages may cease manufacturing or communications, and the supply chain required to move products around may collapse entirely. During the Japan floods of 2011, an organized shutdown derailed production and economics across the globe.
Hazards And Preparation
Every one dollar invested in preparation will be worth seven dollars worth of economic loss. A company should have insurance against natural disasters but also assess the risk that specific disasters would have on their operations. A recovery plan will also help to keep the harm to a minimum.
Boston University Master of Science in Management Online
Source: http://msmonline.bu.edu/survive-a-natural-disaster/
