Contingency Planning

Is Your Business More Vulnerable to a Disaster?

July 9, 2007

Certain industries are more vulnerable to costly contingency efforts than others. Knowing this in advance will help lessen the pain during the aftermath of a disaster and during rebuilding efforts. Knowing what a disaster can do before it strikes will make your business stronger and more viable. Planning for this is also a great asset to the future business growth. After all, if your company is located in an area that could suffer a serious setback or risk its business livelihood altogether, start planning now.

The month of June marks the beginning of the hurricane season which runs through Nov. 30. Already, the East Coast has experienced its first tropical storm during the early days of the season. "According to experts at the NOAA Climate Prediction Center there is a 75 percent chance that the Atlantic Hurricane Season will be above normal this year and those in hurricane-prone regions should begin preparation plans now," says William McGuire, president of the New York-based Global Security Associates (GSA), LLC.

One particular area that has unique needs in the event of a disaster is the healthcare industry. There are many scenarios to consider in the healthcare setting according to McGuire. During the devastating hurricane season of 2005, GSA was retained to plan and carry out the emergency contingency plans for a network of hospitals and healthcare facilities in the Gulf Coast region. They credit their success to early planning, detailed preparation and rapid deployment of support personnel.

In any major disaster, hospitals and other healthcare related facilities become a point of focus as human nature is to migrate to a location where care and attention is provided. "There is a sudden surge in demand and influx of people that can over-strain the facility rendering it incapable of providing critical services during emergencies. This inability to assist people can result in tensions and ultimately impact the safety and well-being of personnel," says Victor Anderes, vice president of special operations.

The utility industry is equally impacted. With a loss of basic utility services, persons in need will seek to take matters into their own hands and become aggressive in demanding services in order to restore their living conditions - water and electricity providers should be prepared to deal with this. Even gas stations become key focus points as the need to operate generators, vehicles and other equipment becomes more crucial in the absence of electricity and gas.

While businesses typically have a plan for everyday operations, part of their contingency plans include utilizing their own local in-house or sub-contracted security personnel to provide protection. If a major disaster strikes, these personnel from the local community are impacted on a personal level and their priority is to take care of their families and homes. This results in businesses being unprotected due to lack of personnel being available. It is therefore prudent that contingency plans include bringing in security personnel from remote, unaffected locations.

The preparation for, and response to, a disaster, can determine the future of a company or organization. The failure of an organization due to its inability to respond to an undesired event can have dire consequences for the company and ultimately the livelihood of its employees and thereby the local community. Preparation is crucial and provides peace of mind in addition to future stability. To determine the extent of preparation required, the company leadership need only ask themselves the question: "How many days will my company survive if we are unable to conduct business?"

- GSA