Business Continuity

Disaster Preparedness

Due to past events such as September 11, 2001 and Hurricanes Katrina and Rita, our environment has proved to be increasingly volatile and unpredictable, and it is in the best interest of every business to have a continuity plan in case of interruption. A company's response plan can reduce the impact and losses they may suffer if otherwise unprepared, as well as diminish stress and anxiety. If a disaster were to occur, rescue crews may not be able to reach some areas immediately, or they may need to focus their efforts elsewhere; therefore, the Federal Emergency Management Agency (FEMA) recommends that every business and home should be able to remain self-sufficient for at least three days. Potential problems businesses may face include:

  • Cash flow and electronic banking accessibility
  • Healthcare accessibility
  • Power
  • Fuels
  • Law enforcement (local and federal)

Disaster preparation is extremely important, whether an office has 2 or 2,000 employees. The Greater Houston Partnership aims to provide the public with templates and other useful resources to assist in the creation of a personalized business continuity plan. Using this guide along with information and instructions from local emergency management offices makes preparation practical.

Facts

  • Disasters disrupt hundreds of thousands of lives every year. Each event has lasting effects, both to people and property.
  • You should also be ready to be self-sufficient for at least three days. This may mean providing for your own shelter, first aid, food, water, and sanitation. FEMA
  • Floods kill an average of 140 people per year, making them the leading cause of deaths associated with thunderstorms.
  • According to the National Weather Service, U.S. encountered an estimated $3.745 billion in flood damages in 2006.
  • An estimated 1106 tornadoes occurred across the U.S. in 2006.
  • Texas averages 137 tornadoes each year, the highest number of any state in the U.S. (National Weather Service - Houston/Galveston)
  • Tornadoes are most common during the spring and summer months nationwide, but due to our proximity to the Gulf of Mexico as a moisture source, tornadoes can occur in southeast Texas any time of year. (National Weather Service - Houston/Galveston)
  • In 2003, there were about 700 natural disasters that caused approximately $65 billion in damage (source: Munich Re, 2004). Of this, insured losses accounted for only $15.8 billion.
  • The average cost of a Category 1 hurricane is $24 million.
  • The average cost of a Category 5 hurricane is $5.9 billion. (http://news.bbc.co.uk/2/hi/202344.stm) The 5 costliest hurricanes in history range between $13 billion and $81 billion. (http://www.wunderground.com/hurricane/damage.asp)