According to an infographic from Boston University, one out of four businesses does not reopen following a natural disaster. The reason is simple. Most companies are not prepared. The data tells us that 60% (nearly two out of three) small businesses do not have formal emergency-response plans despite the many direct and indirect losses that a natural disaster can cause.
Keep in mind, natural disasters can affect your business in many ways. For example, your office building could be damaged or any link in your supply chain could be affected by natural disasters around the world. In other words, just because you don’t live in Tornado Alley or a state known for its hurricanes or earthquakes, that doesn’t mean your business is immune to the effects of global natural disasters.
Did you know that your business can manage natural disaster risk by conducting a thorough risk assessment and business impact analysis? Once the risks are identified, you can document steps to mitigate them by investing in a comprehensive recovery plan. As the infographic below shows, every $1 invested in disaster preparedness can prevent $7 worth of disaster-related economic losses.
Is your business prepared?
Boston University Master of Science in Management Online
