Elements of a Good Disaster Prevention Plan

Elements of a Good Disaster Preparedness Plan

Keeping a disaster plan is crucial to maintaining your business continuity after the unimaginable happens. You can't prevent "sponsoring disasters" such as hurricanes, fires and floods, but you CAN prevent them from causing an even more personal and long-lasting disaster: the destruction of your business.

The key to an effective disaster plan is making sure that everyone knows exactly what to do. Planning ahead equals rapid recovery.

When southern California wildfires struck Hunter Industries in 1996 and again in 2003, the company was well-prepared. Communication was vital. Because Hunter had its priorities in place, no one was hurt, the damage was quickly contained, and production was nearly back in full swing in just a few days.

There are three vital priorities for any disaster preparedness program:

First Priority: Ensure your employees' safety

Remember the fire drills at school when you were growing up? When the alarm went off, the first thing everyone was supposed to do was leave the building in an orderly manner and meet at a predetermined spot. Practicing the drill often enough made the response practically automatic.

When the "alarm goes off" to notify you of a possible disaster, you'll be better prepared with a checklist and if you have designated enough people to be responsible to cover every area. Know who's in charge of what, and practice at least one evacuation drill a year to get experience. After the drill, get input from your people as to what can be improved. Maybe you've overlooked something that they haven't.

Put someone in charge of notifying employees who are offsite to not attempt coming to work. If you have a large organization, you might create a phone tree, where each person called has a list of others to call. This expedites the message to the entire company.

Also, post evacuation routes from buildings and off the site. Keep emergency numbers next to every phone. In the event of power outages or downed phone lines, make sure that you have a battery powered radio on hand to listen to news reports. Change the batteries every few months just to be on the safe side.

A good time to refresh everyone's memory of emergency procedures is during your employee safety briefings. Also, make sure to include your procedures and emergency contact information in your employee handbook.

Second Priority: Secure your irreplaceable items

The two most vulnerable and irreplaceable items in any company are computer files and critical papers.

Anyone who has ever lost data files knows the importance of backup disks. Many small companies copy their files every day and send the backup disks home with a trusted employee, or they go home with the owner. Some companies send their backup files over the Internet to be stored offsite. If something should happen, the business won't be caught trying to recompose irreplaceable, vital information. While the computers may be destroyed, the business functions they perform (information storage and management) won't be affected.

Critical papers should be kept in a fire-resistant safe, or within easy reach in the event of a sudden evacuation. Make it part of your plan for someone in each department to remove the papers when they leave if possible.

Companies that have been around for a long time tend to accumulate a great deal of paper in filing cabinets and archive boxes. Consider reducing your fire risk by archiving old papers offsite in a storage facility, or getting rid of them altogether. If there's something in your archive that is vital to your business, it's better to move it offsite before disaster strikes.

Third priority: Secure your equipment, inventory and facility

Most equipment and inventory is replaceable. Facilities can be rebuilt. And most companies carry insurance to cover such losses. Disaster preparedness includes making sure you have enough insurance. Is yours sufficient?

Securing your assets includes reviewing your insurance to make sure that it's enough to restore your operation after a disaster. Too often, business owners become lax in this area. Keep a current list of all items in your business, along with model and serial numbers, and photographs that reflect the condition of your assets ("proof of assets"). Inventories change and businesses grow. Your insurance needs to keep pace with where you are today.

Also, when you file your claim after a disaster to your business, don't take the first settlement offer. This is where negotiation starts. If you've taken care to document your assets and cover them with adequate insurance, you'll be in a strong position and more likely to get the maximum relief.

If you practice disaster prevention, you've already covered most of what you can do to prepare for when disaster is imminent. In addition, set up a contingency plan for temporary equipment or replacement supplies, and a backup base of operations so that you can resume work at least to some degree during the recovery phase.

Although businesses often fiercely compete during the normal course of business, when disaster strikes those same competitors often become your best friends. Make sure to let them know that they can come to you for help as well. These are great resources!