Attitude is Key Factor in Disaster Preparedness

Corporations and individuals often underestimate their exposure to risk and are consequently unprepared for disaster when it strikes, say experts who study risks. Howard Kunreuther, professor of Decision Sciences at the Wharton School of Business, discussed the failure of many to adequately prepare for catastrophes. “There is a psychology of denial at play, where many believe that a disaster will not happen to them, and it is very difficult to change their perception”, says Dr. Kunreuther.

In my own experience as a risk reduction specialist, what Dr. Kunreuther says is very true. Business owners are geared to deal with whatever situation comes up that day, not necessarily a future problem. Businesses are in a “survival” mode, and that certainly is understandable in this economic environment. However, there is more to being an insurance agent than just selling insurance than just satisfying the creditors for a business. I see it as my responsibility to let you know some of the potential dangers that lie in front of the business owner.

The key question here is this: If a major disaster happens to your business, how are you going to handle it? Just having insurance may not be enough. How are you going to handle several key questions?

---How will you maintain you current customer base if you are shut down for a long period?

---If a disaster occurs, how fast can you get up-and-running again, and how will that happen?
    Who is responsible for what?

---Do I have adequate controls in place to keep us going in case of an emergency?

---What happens if I die tomorrow? Do I have quality people to keep the business going without me?

---Many more important issues

There’s more to a disaster than just the insurance. Reducing your risk and effectively dealing with disasters obviously includes the insurance coverage, but there must be plans in place to keep your business going without any more interruption than necessary as well.

Can you name some major disasters or occurrences that could occur in your business that you aren’t prepared for? I bet I can!

The template for a disaster recovery plan is fairly simple. The process of putting it together is much more complicated. Let us know if we can help you with that process.