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Can Your Organization Survive a Natural Disaster?

In the wake of a natural disaster, about a quarter of businesses never reopen.

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Whether due to primary concerns like a warehouse flooding, secondary complications like supply chain disruption, or indirect consequences like transportation shutdown that prevents employees from getting to work, there are a broad range of risks that can severely impact any business in the wake of a catastrophe that must be planned for.

Planning and securing against natural disaster risks can be daunting and exceptionally expensive, but researchers have found that every dollar invested in preparedness can prevent of disaster-related economic losses.

Check out more of the questions to ask and ways to mitigate the risk of natural disasters for your organization with this infographic from Boston University’s Metropolitan College Graduate Programs in Management:

Survive a Natural Disaster

Building Resilient Communities on a Shoestring Budget

Jay Shaw IDCE

NEW ORLEANS—While it may seem counterintuitive at an event that also has an expo, one speaker at the International Disaster Conference today argues that a lot of the “preparedness” products on the market are not worth the price tag—and may even work against public safety.

According to the graduate research of disaster management expert and firefighter paramedic Jay Shaw, dikes and levies reduced people’s preparedness levels by 25% for all hazards including flooding. About three quarters of respondents in his research had experience with a major flood, and 75% felt prepared for a flood. Yet 65% felt unprepared for any other disaster, and 46% did not have any emergency kit, plan or supplies.

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The dikes in their town, Shaw found, led to a sense of security against flooding risk, and left many unaware of other risks and how to best prepare for them.

Nationally, a 2009 FEMA study found that 57% of people claim to be prepared for a disaster for 72 hours. Under further review, however, 70% of these individuals did not know the basic components of an emergency go-bag or emergency plan.

Amidst go bags, 72-hour disaster kits, car kits, evacuation kits, shelter in place kits, and disaster buckets, the consumer-facing market for emergency preparedness often just confuses the public, selling overlapping supplies and sometimes contradictory instructions.

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“We are failing to get through to people,” Shaw said. “We need to stop telling people what to do and start showing them. A 72-hour preparedness message is not enough. It is a great idea to tell people to get prepared, but people are not doing it. And part of the problem is that there is no social stigma—it is still acceptable to be unprepared.”

Other top barriers to preparedness, according to Shaw, include:

  • Ignorance – “It won’t happen to me”
  • Risk perception is low
  • Hazard recognition is low
  • Cost
  • Vulnerable population
  • Confused about what to do
  • Capacity to cope is too high, due to a false sense of preparedness

Indeed, most people with resources consider a credit card all the emergency kit they need. “If you have to evacuate in the middle of the night, you’re going to take out the credit card and get a hotel room. If Ebola is coming, we’ll rent a cabin out by the lake and get out of town,” Shaw said.

Even those who do purchase basic pre-made kits are not improving capacity for resilience. “We are selling a sense of security, but if you’re opening it for the first time in an emergency, you have gained nothing to prepare for and understand the risks of a disaster and how to best make it through,” he said. “Buying all the kits for the hazards in my community would cost $2,600 and it would take up a 10-by-10 room in my basement. But I not be prepared because I would not know how to use them.”

Some of the best solutions may include:

  • Conducting comprehensive research on preparedness levels to understand why they are so low
  • Encouraging communities to engage in creative ways to finance local preparedness efforts and events
  • Using the soldiers we have—figure out what percent of duties we can take away to increase the prevention roles and education of police, fire, EMS and healthcare professionals
  • Developing and maintaining CERT teams, including members from prospective police, fire and EMS candidates, even offering the incentive of hours on the team for preferred application status
  • Shifting department and budgetary focus from response to preparedness
  • Creating train the trainer courses to build capacity across departments
  • Developing an international strategy on the contents of emergency kits, analyzing relevant risks and tailoring messaging on what it means to prepare for known risks and hazards
  • Aligning marketing strategies on the real risks and the best means of being prepared
  • Building relationships locally and lobbying colleges and universities for applied projects that offer real-world solutions to local risks

Other marketing can also greatly improve local preparedness. Encouraging programs at local schools and community groups and even naming or offering sponsorship on dikes and dams can increase awareness and incentivize discussion and around risk mitigation measures.

Lessons From Ebola: Boosting National Preparedness for Pandemics

NEW ORLEANS—At the first day of the International Disaster Conference and Expo (IDCE), one of the primary topics of areas of concern for attendees and speakers alike was the risk of pandemics and infectious diseases. In a plenary session titled “Contagious Epidemic Responses: Lessons Learned,” Dr. Clinton Lacy, director of the Institute for Emergency Preparedness and Homeland Security at Rutgers, focused on the recent and ongoing Ebola outbreak.

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While only four people in the United States were diagnosed with Ebola, three of whom survived what was previously considered a death sentence, government and health officials cannot afford to ignore the crisis, Lacy warned.

“This outbreak is not just a cautionary tale, it is a warning,” Lacy said.

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“Ebola is our public health wakeup call.

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A slow start by the Centers for Disease Control, inadequate protective gear in healthcare facilities, and inadequate planning for screening quarantine and waste management were some of the key failings in national preparedness for Ebola. And all were clearly preventable. A significant amount has been done to improve preparedness, Lacy said, but there is still a significant amount yet to do as well.

Among the issues to be addressed, Lacy pointed to:

Lacy Pandemic Preparedness

Some of that improvement must come from the top. Funding has been cut for healthcare facilities nationwide, as has money for the Hospital Preparedness Program, operated by the CDC. Other solutions can be carried out at both a national level and among individual healthcare facilities, including:

Lacy Solutions

Ultimately, Lacy said, the concern is not about Ebola—it’s about the new and emerging diseases that could prove even more catastrophic. Dozens of diseases have been discovered emerging in nature, and we have no previous contact with them, meaning we have no immunity. Further, the risks of reemerging illnesses and synthetic bio threats that any graduate student or doctor of biology could make in a lab pose a significant danger that must be prepared for now.

“Public health infrastructure is like fire departments—you can’t just fund them when there are fires,” Lacy said.

Flurry-Down Economics: The Real Cost of Blizzards

Winter Storm Juno New York City

Despite predictions of a “historic” snowstorm this week, the Northeast – and the insurance industry – largely dodged the blizzard bullet. Over the past 20 years, winter storms have caused an average of $1.2 billion in insurable losses every year, the Insurance Information Institute reported. Last year’s polar vortex and significant snow accumulations came with a price tag between $15 and $50 billion, and winter weather caused $3.7 billion in overall losses, of which an estimated $2.3 billion was insured, according to MunichRe.

NATURAL DISASTER LOSSES IN THE UNITED STATES, 2014

Ahead of what could have been record snow, seven states preemptively declared a state of emergency for what some dubbed Winter Storm Juno. Authorities shut down many major cities, canceling thousands of flights and closing major roads and mass transit systems.

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Though Boston was pummeled by about two feet of snow, New York City and most of the region emerged relatively unscathed.

“We think the economic impact of the storm is going to be relatively small,” said Evan Gold, senior vice president at weather advisory firm Planalytics. “We’re estimating at about 0 million, and that’s simply based on the duration of the storm, the timing of the storm and the population centers that are impacted.”

Others estimate the cost may be closer to $1 billion, considering the lost business, wages and taxes, and snow removal costs. According to a new report from City Comptroller Scott Stringer, in the past 12 years, every inch of snow cost New York City an average of $1.8 million to remove. From 2003 through 2014, the city spent $663.2 million just to clear the snow. Lighter snowfall actually takes a greater toll per-inch. “It’s a lot more expensive on a per-inch basis when we get a little snow because we have startup costs and we have fixed costs. We have to have plows and salt,” Stringer said. As a result, the city saw 55.5 inches of snow in 2003 and paid $740,000 per inch in cleanup costs, while the city had 6.8 inches of snow in 2012 and paid $4 million per inch.

In a press conference on Tuesday, New York Governor Andrew Cuomo shrugged off the financial implications of preparations for and recovery from Juno, calling it one of the “costs of doing business.” He explained, “We factor that in—things like snow removal, salt purchases, overtime for crew to handle storms, these are factored in the budget and this was not exceptional to that process.”

The cost of overpreparation is hefty, however, and it primarily falls upon the public. A one-day storm in Massachusetts costs the state economy about $265 million, while the total cost in New York is around $700 million, according to the Boston Globe. A significant portion of that is due to lost wages for hourly workers, who tend to be hit the worst by snow-related shutdowns.

Travel cancellations have a similar impact.

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According to research firm masFlight, it costs an airline about ,000 to cancel a typical domestic flight on a full-size jet, but the total tab for all the passengers who were supposed to be on board is about ,000, due to the additional costs of lodging and meals.

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More than 4,700 flights were cancelled Tuesday after about 2,800 on Monday ahead of the storm, CNN reported. Amtrak also suspended service between New York and Boston because of the weather.