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Now that we hit the peak of the 2011 Atlantic Hurricane Season, it's a good time to revisit your disaster recovery and business continuity plan. If you don't have one, it's still not to late to do some planning as we have two months left to worry about storms. Advance planning is critical to avoiding a storm related business failure.

A recent poll by the Society for Human Resource Management revealed that a majority of companies have some form of disaster plan, but only a third admitted they felt prepared 'to a great or very great extent'. The cost of being unprepared is a crisis for most businesses. More than four in 10 companies never reopen following a disaster; and 29 percent of those that do reopen close within two years, notes Disaster-Resource.com

Think back six years ago when Hurricane Wilma ravaged South Florida. Office buildings were shut down for weeks costing untold millions due to lost business and productivity. In 2004, I was affected when Hurricane Charley slammed into the state and temporarily shut down two buildings I owned.

From that storm, I learned two important lessons. First, businesses require a solution to allow for continuous operation after a major storm. Many of my tenants didn't have a plan and it hurt them greatly. And second, hurricane-related damage can be prevented.

Business owners keen to have business continuity in the event of a hurricane begin by ensuring their buildings or offices can resist the most powerful storms to keep themselves safe and the business operational. Buildings should have impact-resistant glass and be constructed of reinforced tilt-up exterior walls designed to withstand Category 5 Hurricane winds. Generators should provide back-up power to the entire building - with sufficient fuel to run "business as usual" for days if not weeks before refueling.

What else can be done to mitigate fallout from natural disasters?

Think ahead: Advance planning can help restore services and critical applications, resume normal activity - for employees and customers, and minimize downtime, mitigate liabilities and curb revenue loss.

Write or revisit your plans now: Protection starts with a business continuity plan. This defines key measures and processes to protect the company's business interests.

Prepare an Emergency To-Go List: Every manager should have a list of Must-Take items to be removed from the office quickly in the event of a storm or evacuation, such as the company check book, laptops, vital equipment and contact lists.

Establish your offices with business continuity in mind: If you cannot renovate your building to be more hurricane resistant, consider leasing additional, supplemental space in a hurricane resistant structure in the event your primary office is damaged, destroyed or inaccessible. Hardened or supplemental facilities may aid compliance with federal, tax and regulatory or industry requirements.

Such facilities also may qualify for lower property or windstorm insurance premiums.

Back-up data and create redundant systems: If services are stored on the premises, the facility should be hardened as a data center. Voice over Internet Protocol, or VoIP, phone solutions allow businesses to stay connected, as long as the Internet remains online.

Before the next storm, ask yourself this question: When a storm warning is issued, will you be able to lock your office door - knowing you can resume your business after the storm has cleared?

Philip J. Procacci is the CEO of Procacci Development Corporation, which develops hurricane resistant Class A office buildings in Miami-Dad County.

 

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