Program Management

It is important to invest in a preparedness program. The following are good reasons:

• Up to 40 percent of businesses affected by a natural or human-caused disaster never reopen. (Source: Insurance Information Institute.)
• Customers expect delivery of products or services on time. If there is a significant delay, customers may go to a competitor.
• Larger businesses are asking their suppliers about preparedness. They want to be sure that their supply chain is not interrupted. Failure to implement a preparedness program risks losing business to competitors who can demonstrate they have a plan.
• Insurance is only a partial solution. It does not cover all losses and it will not replace customers.
• Many disasters — natural or human-caused — may overwhelm the resources of even the largest public agencies. Or they may not be able to reach every facility in time.
• News travels fast and perceptions often differ from reality. Businesses need to reach out to customers and other stakeholders quickly.
• An Ad Council survey reported that nearly two-thirds (62 percent) of respondents said they do not have an emergency plan in place for their business.
• According to the Small Business Administration, small businesses:
• Represent 99.7 percent of all employer firms
• Employ about half of all private sector employees
• Have generated 65 percent of net new jobs over the past 17 years
• Made up 97.5 percent of all identified exporters.

Preparedness Policy

A preparedness policy that is consistent with the mission and vision of the business should be written and disseminated by management. The policy should define roles and responsibilities. It should authorize selected employees to develop the program and keep it current. The policy should also define the goals and objectives of the program. Typical goals of the preparedness program include:

• Protect the safety of employees, visitors, contractors, and others at risk from hazards at the facility. Plan for persons with disabilities and functional needs.
• Maintain customer service by minimizing interruptions or disruptions of business operations
• Protect facilities, physical assets, and electronic information
• Prevent environmental contamination
• Protect the organization’s brand, image, and reputation

Key employees should be organized as a program committee that will assist in the development, implementation, and maintenance of the preparedness program. A program coordinator should be appointed to lead the committee and guide the development of the program and communicate essential aspects of the plan to all employees so they can participate in the preparedness effort.

Program Administration

The preparedness program should be reviewed periodically to ensure it meets the current needs of the business. Keep records on file for easy access. Lastly, where applicable, make note of any laws, regulations and other requirements that may have changed.