Top Natural Disasters that Threaten Businesses

TOP NATURAL DISASTERS that Threaten Businesses Since 2000, natural disasters have cost the global economy $2.5 trillion 1in 3 small business owners 2000 2001 2002 2012 2013 said they have been PERSONALLY AFFECTED BY In 2013, natural disasters cost the global insurance industry around $37 billion A STORM OR EXTREME WEATHER $3,000/day CLOSED Small businesses' AVERAGE LOSS 1in 4 small- and medium-sized after closing due to A MAJOR STORM hit by a major storm DO NOT REOPEN of small businesses do NOT have 84% 71% DISASTER INSURANCE In the event of of small business owners lack a back-up generator a power outage 2013's U.S. Natural Disasters Causing Most Economic Loss TOP 5 MOST SIGNIFICANT EVENTS IN U.S. in 2013 DEATHS 29 2 DEATHS May 18-22 Severe Weather March 18-20 ECONOMIC $3.8 LOSS $2.5 ECONOMIC BILLION LOSS Severe Drought $14 billion BILLION N/A in economic loss 27 DEATHS DEATHS May 26-June 2 Severe Weather Jan/Dec Drought ECONOMIC LOSS $3.5 BILLION $2.3 ECONOMIC BILLION LOSS SEPTEMBER'S CATASTROPHIC FLOODING in Colorado was responsible for $2 billion Loss IN ECONOMIC LOSS ALL OTHER NATURAL DISASTERS for 2013 caused an estimated 16 BILLION IN ECONOMIC LOSS Who is Most at Risk? U.S. COASTLINE TOP 5 STATES with PRESIDENTIAL DISASTER FORECAST for 2014 MAJOR DISASTER DECLARATIONS 1. Texas | 86 MAJOR DISASTERS 79% probability of landfall for a 2. California | 78 MAJOR DISASTERS TROPICAL STORM 3. Oklahoma | 73 MAJOR DISASTERS 68% probability of a category 1 or 2 * Blizzards 4. New York | 67 MAJOR DISASTERS HURRICANE h Earthquakes probability 52% of a category 3, 4 or 5 5. Florida | 65 MAJOR DISASTERS Flash floods HURRICANE River floods Hurricanes ERE Tornadoes Cn Tsunamis - In an analysis of the disaster potential for 616 of the world's largest cities, only one city in the U.S. made the top ten: Wildfires the Los Angeles, California with an estimated 16.4 million potentially at risk, particularly to EARTHQUAKES and FIRES Prepare Your Business Conduct a Business Impact Analysis The analysis predicts the consequences of disruption that business functions would incur and gathers information to develop recovery strategies Develop a Disaster Recovery Plan An impact analysis should include operations and finances potentially impacted by a disaster, such as: of the businesses 90% LOST or DELAYED SALES and INCOME 43% of small businesses have A DISASTER RECOVERY PLAN that do have a plan SPEND LESS THAN ONE DAYA MONTH maintaining and fine-tuning those plans INCREASED EXPENSES REGULATORY FINES CONTRACTUAL PENALTIES EXPLORE recovery strategies and disaster recovery procedures INVESTIGATE both property insurance policies and business interruption DETERMINE alternative work sites CUSTOMER DISSATISFACTION and backup vendors or CHANGES in STAFF insurance to cover lost income suppliers Back Up Documents & Records 9, % of small BACK UP CRITICAL FINANCIAL DATA businesses TO PREPARE FOR AN EMERGENCY but only 4 in 10 OF THOSE BUSINESSES KEEP THE DATA OFF-SITE BACKUP COPIES OF CRITICAL RECORDS – including accounting and employee data, customer lists and inventory - should be kept in a separate location at least 50 MILES AWAY, or maintained by an online data backup service provider Include Employees At minimum, a business The plan should include Employees may have to choose between personal and business obligations following a natural disaster, so a business that helps employees prepare for disaster should have an emergency plan for protecting employees & visitors evacuation, severe weather sheltering and responsibilities of employees in the event of a natural disaster can also help the employee return to work faster http://www.ready.gov/business http://media.swissre.com/documents/sigmal_2014_en.pdf http://media.swissre.com/documents/Swiss_Re Mind the_risk.pdf http://usatoday30.usatoday.com/life/graphics/natural_disasters/flash.htm EKU http://www.businessinsider.com/un-natural-disasters-cost-25-trillion-2013-5 http://www.businessnewsdaily.com/4822-natural-disaster-small-business.html http://www.bankrate.com/finance/weather/natural-disasters/states-most-at-risk-for-major-disasters-1.aspx Online http://thoughtleadership.aonbenfield.com/Documents/20140113_ab_if_annual_climate_catastrophe_report.pdf http://readwrite.com/2013/02/22/the-severe-impact-natural-disasters-can-have-on-small-businesses-infographic http://www.forbes.com/sites/capitalonespark/2013/01/28/natural-disasters-and-emergencies-is-your-small-business-prepared