Every day, we get more evidence that 2011 is the worst disaster year the world on record.
Turkey is still digging out from a tragic earthquake that has reportedly killed more than 420 people.
Thailand is awash with floodwaters that have reportedly killed more than 350.
And now Ireland’s capital city has suffered a flash flood that reportedly killed two and stranded many Dubliners.
Today at 10:20 a.m. Pacific time, many Californians participated in the Great California ShakeOut, a state-wide drill that helps people and organizations be better prepared for major earthquakes. Wherever they were at that moment this morning, those who participated practiced the drop, cover and hold on technique as if there were a major earthquake occurring at that moment.
In an article I penned in the October issue of Risk Management, I summed up the history of this gargantuan drill.
Started in 2008, the Great California ShakeOut began as the Great Southern California ShakeOut — an effort by scientists and emergency managers to inform the public about earthquake preparedness. The drill was based on the ShakeOut Scenario, a comprehensive description of the destruction a magnitude 7.8 earthquake on the San Andreas fault would cause in Southern California, which was organized by the United States Geological Survey’s Multi-Hazards Demonstration Project. In 2008, the ShakeOut became the largest earthquake drill in U.S. history with 5.4 million participants spanning eight counties in Southern California. This year, more than eight million are expected to participate in California alone with Nevada, Oregon, Idaho and British Columbia practicing the “drop, cover and hold on” technique as well.
The drill has since spread to Japan, Puerto Rico, Hawaii, Alaska, Turkey and Chile. Below is a video produced by the Great California ShakeOut team showing the exact drill millions followed this morning.
Lying in the wake of some of the most recent flooding, wildfires and earthquakes our nation has seen are the risk and loss concerns harvested by business owners.
Whether a disaster is natural or man-made, recent events have certainly taught business owners about the importance of proactive planning.
This form of preparation can and should be a part of every business’ risk management strategy. Proper risk management solutions take into consideration all areas of potential loss, including those caused by Mother Nature and beyond.
Although the term “disaster” may infer a catastrophic event such as large-scale flooding, fires or earthquakes, the most common claim-worthy disasters tend to be smaller in scale, such as flooding from a burst pipe, heavy snowfall resulting in a leaky roof, contamination and so on.
In order to plan, one must be aware of the risk exposures you face as well as what to expect. With that said, what potential disasters may your business fall victim to?
)
Once you’ve determined the forces you are up against, it’s critical that you develop a plan to safeguard your commercial investment. One tactic can include implementing a “collections risks assessment.” Ask yourself a series of questions, in regards to the aspects of your business which may be affected by a disaster – what is the potential resulting loss in value? What is the likelihood that a natural or man-made disaster will occur? What percentage of my company or goods and services are vulnerable?
Taking the time now, to prepare and help prevent significant loss, is a surefire way to protect your commercial enterprise.
It costs far less to put the proper risk management plans in place than to recover from the full force of an unexpected disaster.
Gordon B. Coyle, CPCU, ARM, AMIM, is owner of independent risk management agency The Coyle Group.
Welcome to the newest edition of the Cavalcade of Risk (CoR), in which we feature relevant and timely blog posts covering topics from small business risk management to fire and flood insurance to medical misadventures. These posts, and their authors, offer up unique and informative posts on all things risk management and insurance. Enjoy.
The next Cavalcade of Risk host is Jaan Sidorov at the always informative and interesting Disease Care Management Blog. Don’t forget to check out the next batch of blog posts on his site.