How To Prepare For Business Disasters

u, like most people, think that starting a businessLet’s give you an idea of how to go
is the toughest part of entrepreneurship, allow usabout that emergency action plan.
to change your view. Managing a successfulI. A list of people responsible for assessing the
business year after year, while ensuring that it isdegree of risk to the business should be clearly
protected from harm, is even more challenging.included.
Tense, already? Take it easy! … We areII. A list of names and designations of people who
here to give you some tips on how to prepareare responsible for making decisions, checking
yourself to face business disasters.response actions, and bringing the business back
It might happen some day. Despite not beingto its normal operations should be incorporated.
located in a disaster-prone area, calamity like windMake sure that someone responsible is in charge
storms, tornadoes and earthquakes can hit anyof contacting emergency service providers. In
time with little or no warning, destroying youraddition, nominate a person to act as a contact
entire business. Even if a flood doesn’t putpoint for outside parties, such as customers and
your business under water, it may distance yourvendors.
customers and suppliers. Alternatively, lengthyIII. Instructions about the proper handling of
illness, accident or unexpected death of one ofvarious machinery and equipment must be
your business’ co-founders can also meanincluded.
the collapse of your company.IV. Guidelines on emergency rescue operations,
Hence, while running the business, you should havemedical tasks, fire fighting and other activities
a plan of how you will handle catastrophe.must be provided.
Although, you cannot be hundred percent sure3. Sit with your people:
that you have covered all the unpleasantOnce you are through with drafting the plan, sit
possibilities, here are some simple steps that candown with your employees to discuss it. Your
help protect your business and its assets.people should be properly informed about all the
Let’s talk about them.threats that could strike, and what they are
1. Find out what might go wrong:expected to do in the event of disaster.
First of all, list out what could go wrong with yourIf they seem to have no prior experience of
business. Once you have identified the threats,handling any type of business crisis, you had
you need to rank them in order of maximumbetter arrange a trial run for them. It might also
impact and likelihood.result in your employees devising a more efficient
Next, assess how vulnerable your business is tostrategy of tackling a business disaster.
those calamities. For example, think about4. Inform the people concerned:
whether the employees are properly trained onYou are also supposed to inform the authorities
an appropriate course of action to be taken in theand other service providers about the identified
face of natural calamity. If you’re worriedthreats and the action plan you have prepared to
about security issues, find out whether thedeal with them. During a crisis, the concerned
company’s security system is capable ofpeople are typically the police, the local fire
thwarting insider theft. Other exigencies includedepartment and the emergency medical service.
sudden power failure, an accident on the workIt is a proven fact that those businesses that
site or incapacitation of key staff members.acquainted the authorities with this information lost
2. Write down a plan:less in times of trouble. At the same time, being
Your next job is to create an ‘emergencyexperienced in handling emergencies, they can
action plan” . It is basically a manuallyprovide you with valuable advice on how to
written document for dealing with the identifiedimprove your preparedness.
threats to your business. The modules of yourWhile these measures may help your business
plan must make sense, and also be in conformityrecover from the ravages of disaster, it might still
with prevailing law. For instance in the Unitedreel under the aftermath of calamity. Often,
States, it should contain an OSHA-directedinjured parties might sue your business for
evacuation plan; must follow the Sarbanes-Oxleydamages suffered on its premises. Another time
antifraud law; should not contradict the provisionswe’ll talk about how you can save your
of the 1996 Health Insurance Portability andcompany from being dragged into court at the
Accountability Act, the National Fire Protectionend of a business disaster, and how to come out
Association’s Life-Safety Code and so on.on top, should the worst happen.