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In this article

Disaster Planning and Emergency Preparedness for Risk Managers

SNATIKA
Published in : Business Management . 13 Min Read . 1 year ago

Disaster planning and emergency preparedness are critical for organisations to ensure the safety of their employees, customers, and assets. Natural disasters like hurricanes, earthquakes, floods, and wildfires, as well as man-made disasters like chemical spills, power outages, cyberattacks, and terrorism, can cause significant harm to businesses and their stakeholders. As a manager, it is your responsibility to plan and prepare for potential disasters to minimise their negative impact on your organisation. In this article, we will outline the steps that managers can take to develop effective disaster response plans, communicate effectively during a crisis, and support post-disaster recovery efforts. By following these guidelines, you can help protect your organisation and ensure its resilience in the face of adversity.


Types of Disasters

1. Natural Disasters

Natural disasters are events that occur due to natural processes like weather patterns or geological movements. They kill on average 45,000 people per year, globally (Source: Our World in Data). These disasters can cause significant damage to infrastructure, property, and human lives and disrupt business operations for extended periods. As a manager, it is essential to plan and prepare for natural disasters that are common in your region to minimise their potential impact on your organisation.

 

Hurricanes are severe tropical storms that can cause strong winds, heavy rain, and flooding. The total approximate cost of damages from weather and climate disasters in the U.S. from 1980 to 2021 is over $2.155 trillion. In the United States, hurricanes frequently affect the Atlantic and Gulf Coast regions, causing significant damage to businesses and properties. Managers in these regions should have a hurricane response plan that includes evacuation procedures, communication protocols, and a plan to secure physical assets.

 

Earthquakes are the result of geological movement and can cause significant damage to buildings and infrastructure. According to the World Bank, the recent earthquake damage in Türkiye is estimated to exceed $34 billion. Earthquakes are unpredictable and can happen anywhere, although they are more common in regions along tectonic plate boundaries. You must conduct regular safety drills, secure buildings and infrastructure, and develop communication plans for employees and stakeholders.

 

Floods are another type of natural disaster that can cause significant damage to infrastructure and property. Floods can occur due to heavy rainfall, coastal storms, or overflowing rivers and canals. Have a flood response plan that includes evacuation procedures, securing physical assets, and communication protocols for employees and stakeholders.

 

Wildfires are becoming more common across the world due to climate change and can cause significant damage to businesses and properties. Managers in wildfire-prone regions should have a wildfire response plan that includes evacuation procedures, securing physical assets, and communication protocols for employees and stakeholders.


Related Blog - Risk Management Strategies for Climate Change


2. Man-Made Disasters

Man-made disasters are events that are caused by human activities or errors and can cause significant damage to infrastructure, property, and human lives. As a manager, it is essential to plan and prepare for man-made disasters that could affect your organisation.

 

Chemical spills can occur due to accidents in industrial plants or during transportation. Chemical spills can cause severe harm to human health, contaminate the environment, and damage property. Have a chemical spill response plan that includes evacuation procedures, securing physical assets, and communication protocols for employees and stakeholders.

 

Power outages can occur due to natural disasters, equipment failures, or cyberattacks. Power outages can disrupt business operations and cause significant financial losses. Managers should have a power outage response plan that includes backup power sources, communication protocols, and a plan to secure physical assets.

 

Cyberattacks are a growing threat to businesses and can result in data breaches, ransomware attacks, and other forms of cybercrime. There are 2,200 cyber attacks per day, with a cyber attack happening every 39 seconds on average. Cyberattacks can disrupt business operations, cause financial losses, and damage the organisation's reputation. Every manager must have a cybersecurity response plan that includes regular training for employees, backup data storage, and communication protocols for stakeholders.

 

Terrorism is another type of man-made disaster that can cause significant harm to human lives and property. A research paper by Harrison Bardwell and Mohib Iqbal estimates the economic impact of terrorism at $US 33 billion in 2018. In the 18 years from 2000 to 2018, terrorism cost the world economy $US 855 billion. Acts of terrorism can include bombings, shootings, or other violent attacks. Have a terrorism response plan that includes evacuation procedures, securing physical assets, and communication protocols for employees and stakeholders.

Steps to Disaster Planning and Emergency Preparedness

1. Risk Assessment

The first step in disaster planning and emergency preparedness is to conduct a risk assessment. A risk assessment is a process of identifying potential hazards and evaluating their likelihood and potential impact on the organisation. The purpose of the risk assessment is to identify the areas of the organisation that are most vulnerable to disasters and to prioritise the allocation of resources for disaster planning and emergency preparedness.

 

Identify potential hazards

Start by identifying the types of natural and man-made disasters that are most likely to occur in your region. This could include the above-mentioned examples of hurricanes, earthquakes, floods, wildfires, chemical spills, power outages, cyberattacks, and terrorism.

 

Evaluate the likelihood and potential impact

Once you have identified the potential hazards, evaluate the likelihood and potential impact of each event. Consider factors like the severity of the event, the location of the organisation, the potential damage to infrastructure and property, and the potential harm to employees and customers.

 

Prioritise areas of vulnerability

Based on the risk assessment, prioritise the areas of the organisation that are most vulnerable to disasters. This could include physical assets, IT infrastructure, critical business processes, and employee safety.

2. Develop a Disaster Response Plan.

Once you have conducted a risk assessment, the next step is to develop a comprehensive disaster response plan. The disaster response plan should outline the steps to be taken before, during, and after a disaster to minimise the potential impact on the organisation and ensure the safety of employees and stakeholders (Source: Ready.Gov).

 

Establish an emergency response team

Identify key personnel who will be responsible for implementing the disaster response plan. This could include a crisis management team, an emergency response team, and a communication team.

 

Develop evacuation procedures

Develop evacuation procedures for employees and customers in the event of a disaster. This should include clear instructions on how to exit the building, designated meeting places, and protocols for accounting for all employees and customers.

 

Secure physical assets

Develop a plan to secure physical assets, including equipment, inventory, and facilities. This could include measures like shutting down critical systems, boarding up windows, and relocating assets to a secure location.

 

Establish communication protocols

Develop a plan for communicating with employees, customers, and other stakeholders in the event of a disaster. This should include backup communication systems, designated spokespersons, and protocols for sharing information with external agencies like emergency responders and government officials.

 

Develop a business continuity plan

Develop a plan to ensure the continuity of critical business processes in the event of a disaster. This could include measures like backup data storage, alternative work locations, and protocols for remote work.

3. Train and Test the Disaster Response Plan.

The third step in disaster planning and emergency preparedness is to train employees and test the disaster response plan regularly. Training and testing are essential to ensuring that employees are familiar with the disaster response plan and can execute it effectively in the event of a disaster.

 

Conduct training sessions for employees to ensure that they are familiar with the disaster response plan and their roles and responsibilities during a disaster. This could include tabletop exercises, simulations, and drills.

 

Test the disaster response plan regularly to identify any gaps or areas for improvement. This could include full-scale exercises, simulations, and tabletop exercises.

 

Review and update the disaster response plan to ensure that it remains current and effective. This could include incorporating feedback from employees and stakeholders, updating contact information, and revising procedures based on new information or best practices.


Related Blog - Common Risk Management Mistakes and How to Avoid Them


4. Establishing Partnerships and Resources

In addition to conducting a risk assessment, developing a disaster response plan, and training employees, managers need to establish partnerships and resources to support disaster planning and emergency preparedness efforts. Partnerships and resources can provide additional expertise, resources, and support in the event of a disaster.

Establish Partnerships

Emergency responders: Establish partnerships with local emergency responders like fire departments, police departments, and emergency medical services. These partnerships can provide valuable resources and support in the event of a disaster.

 

Government agencies: Establish partnerships with local, state, and federal government agencies like the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS). These partnerships can provide access to funding, resources, and expertise in disaster planning and emergency preparedness.

 

Community organisations: Establish partnerships with local community organisations like the Red Cross and other non-profit organisations. These partnerships can provide additional resources and support for disaster response efforts.

Identify Resources

Emergency supplies: Identify and stockpile emergency supplies like food, water, first aid kits, and other essential supplies. These supplies should be stored in a secure location and regularly inspected and maintained.

 

Backup power: Identify backup power sources like generators and uninterruptible power supplies (UPS) to ensure that critical systems and equipment can continue to operate in the event of a power outage.

 

Communication systems: Identify backup communication systems like satellite phones and radios to ensure that communication can be maintained in the event of a communication outage.

 

Insurance coverage: Ensure that the organisation has adequate insurance coverage for property damage, business interruption, and other potential losses resulting from a disaster.

5. Coordinate with Partners and Resources.

Plan and coordinate response efforts. Coordinate response efforts with partners and resources to ensure an efficient and effective response to a disaster.

 

Maintain contact information: Maintain up-to-date contact information for partners and resources to ensure that communication can be established quickly in the event of a disaster.

 

Regularly review and update partnerships and resources to ensure that they remain relevant and effective in supporting disaster planning and emergency preparedness efforts.

6  Crisis Communication

Effective communication is critical during a crisis, as it can help minimise confusion, provide accurate information, and ensure the safety of employees and stakeholders. In the absence of clear and timely communication, rumours, misinformation, and panic can spread, further exacerbating the situation.

Develop a Crisis Communication Plan.

To ensure effective communication during a crisis, managers need to develop a crisis communication plan. The crisis communication plan should outline the communication protocols to be followed before, during, and after a crisis, as well as the key messages to be communicated to employees, stakeholders, and the media. Here are some tips according to SHRM.

 

Establish a communication team. Identify key personnel who will be responsible for communicating with employees, stakeholders, and the media during a crisis. This could include a spokesperson, a media relations team, and a social media team.

 

Develop messaging: Develop key messages to be communicated during a crisis. These messages should be clear, concise, and consistent across all communication channels.

 

Identify communication channels: Identify the communication channels to be used during a crisis, like email, text messaging, social media, and traditional media outlets.

 

Develop a communication timeline: Develop a timeline for communicating with employees, stakeholders, and the media before, during, and after a crisis. This timeline should include regular updates and provide clear instructions on what actions should be taken.

 

Train the communication team: Train the communication team on the crisis communication plan and ensure that they are familiar with their roles and responsibilities during a crisis.

How to Communicate Effectively During a Crisis.

During a crisis, managers need to communicate effectively and efficiently to ensure the safety of employees and stakeholders. The following are some key considerations for effective crisis communication:

 

Be transparent. Be open and honest with employees, stakeholders, and the media about the situation and the organisation's response.

 

Provide regular updates: Provide regular updates on the situation, including what actions are being taken and what employees and stakeholders can expect.

 

Use clear and concise language. Use clear and concise language in all communications to ensure that the message is understood by everyone.

 

Respond to questions and concerns: Respond promptly to questions and concerns from employees, stakeholders, and the media to address any potential confusion or misinformation.

 

Monitor social media: Monitor social media channels for any potential misinformation or rumours and respond promptly to correct any inaccuracies (Source: Mind Tools).


Related Blog - Principles of Risk Management for a Successful Project


Post-Disaster Recovery

1. Evaluation and Assessment

After a disaster, it is important to conduct an evaluation and assessment of the damage caused to the organisation and its assets. This will help in determining the extent of the damage, the resources required for recovery, and the time needed for the organisation to return to normal operations.

 

Physical Damage Assessment: Conduct a physical damage assessment of the organisation's buildings, equipment, and infrastructure to determine the extent of the damage caused by the disaster.

 

Financial Damage Assessment: Conduct a financial damage assessment of the organisation's losses, including lost revenue, increased costs, and damages to assets.

 

Resource Assessment: Assess the resources available for recovery, including personnel, equipment, and financial resources.

 

Prioritisation: Prioritise recovery efforts based on the assessment of damages and the organisation's critical functions.

2. Recovery Planning and Implementation

Once the damage assessment is complete, managers can develop a recovery plan and implement it to get the organisation back to normal operations. The recovery plan should include the following steps:

 

Identify the Recovery Team: Identify the personnel who will be responsible for leading the recovery efforts and assign specific roles and responsibilities.

 

Develop a Recovery Plan: Develop a detailed plan for the recovery efforts that include timelines, resources, and contingency plans for potential obstacles.

 

Implement Recovery Plan: Implement the recovery plan by following the timelines and taking the necessary steps to restore the organisation's critical functions.

 

Monitor Progress: Monitor the progress of the recovery efforts and make adjustments as necessary.

 

Review and Update Plan: After the recovery efforts are complete, review and update the recovery plan based on lessons learned and any changes to the organisation's operations.


Related Blog - Risk Management Tools


3. Business Continuity Planning

To prepare for future disasters, managers should develop a business continuity plan. This plan should include steps to ensure that the organisation's critical functions can continue during a disaster and that the organisation can recover quickly after the disaster.

 

Identify Critical Functions: Identify the organisation's critical functions and develop plans to ensure that they can continue during a disaster.

 

Develop contingency plans for potential obstacles like power outages, equipment failures, and supply chain disruptions.

 

Train Personnel: Train personnel on the business continuity plan and their roles and responsibilities during a disaster.

 

Test Plan: Regularly test the business continuity plan to ensure that it is effective and that personnel are familiar with it (Source: Planning Org).

Conclusion

Disaster planning and emergency preparedness are essential for managers to ensure the safety of their employees and protect their organisation's assets. By following the steps of risk assessment, developing a disaster response plan, establishing partnerships and resources, crisis communication, and post-disaster recovery, managers can minimise the impact of a disaster and ensure a quick recovery.

 

If you are a risk manager, check out SNATIKA's prestigious Master's Degree in Risk Management or MBA program in Risk Management. Regardless of where you are in your career, higher education has something to offer everyone. Check out the programs and keep learning.


Related Blog - Risk Management Challenges in the Future


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