How Businesses Can Prepare for the Worst

All businesses face challenges. Most entrepreneurs would like to think this is limited to the common but relatively manageable things like scaling issues or coping with a skills gap. Unfortunately, this isn’t always the case, and many companies will face a disaster in some form.

These events could come in a variety of forms. Not to mention you can’t always accurately predict what issues are going to come your way. This doesn’t mean your business is entirely powerless, though. With some agile and robust preparation, you can put in place protocols to give you the best chance at overcoming those unexpected obstacles.

We’re going to run down some of the key preparatory components to act effectively should the worst occur.

Understand the Risks

Your first step toward effective disaster preparedness is gaining a full understanding of the risks. Not all businesses will face the same issues. As such, you need to take the time to review what problems are most likely to affect your business so you can direct your preparation priorities appropriately.

Some problem areas to consider include:

Natural

A recent World Risk report found the Philippines is the third highest area for disaster risk. It’s important to stay fully abreast of the specific types of natural disasters most prevalent in your area. Extreme weather is a common concern. If you live in a location that tends to be hit hard by storms and flooding, it’s important to tailor your disaster continuity plans to protect your business, employees, and consumers from the problems that can arise as a result. This might include educating your employees on safety procedures, installing storm safety systems, and creating evacuation plans.  

Technological

Businesses are becoming increasingly reliant on the technology they use in their day-to-day operations. However, there are also risks involved with placing a lot of emphasis on digital tools. If you live in an area seeing a lot of power outages there may be a risk that your business will be disrupted. If you work in an industry that is a major target for cybercrime, the disaster may come in the form of data breaches or a ransomware attack. It is important to consider where your company’s use of technology can make you vulnerable, and adapt your disaster planning to include protection, mitigation, and recovery procedures accordingly.

Gain Expert Input

Expertise is a valuable resource in business. It is a generally accepted principle that you have a better chance of succeeding when you surround yourself with people who know more than you. This is no different when it comes to disaster planning. Your ability to effectively respond can be dependent upon seeking collaborations with those who have relevant knowledge. 

This may be from the perspective of teaming up with disaster management agencies. You can utilize government sources — the National Risk Reduction and Management Council (NDRRMC) provides detailed reports from the council’s meetings about expected events and the recommended preventative steps. The council also provides “Ready to Rebuild” program training manuals you can build into your disaster planning. You should also be seeking advice from professionals on specific areas of concern. Cybersecurity consultants aren’t the only experts that can provide useful insights into preparing for data breaches, it can also be wise to seek legal advice from a lawyer to be aware of your regulatory responsibilities.   

Bear in mind that seeking expertise doesn’t have to be limited to these external organizations and professionals. Your business is likely to be populated by people who are experts in their particular field. Gather staff members and invite them to discuss how various types of disasters may cause disruption, and seek their insights into the solutions. Even when they may not have professional expertise in an area, your staff will likely have skills they’ve cultivated in their personal life that are valuable in an emergency. Together you can collaborate on creating disaster management protocols tailored to your needs and challenges.

Gather Resources

You need to have the right resources in place to react well to disasters and implement a recovery. This is not something that can or should be sought only when the worst has already occurred. Unless the event is occurring solely to your company, there are likely to be a lot of people looking for the same items to pull their business out of the situation. Even when it is a purely internal problem, you’ll be juggling looking for resources with other elements of fallout due to the event. You, therefore, need to prepare an agile set of resources.   

Concerning a natural disaster, you first need to make sure there are resources in place to keep your staff and customers safe and handle the response. This is likely to include sufficient food and clean water, first aid supplies, and emergency radios that can keep you informed should the power or internet networks go down.

However, not all emergencies involve physical danger. There may be unexpected times of recession and depression. A cyberattack may mean you don’t have immediate access to your primary bank accounts. As with the recent pandemic, there may be a sudden drop-off in customer engagement. It’s important to make financial disaster preparations. Financial managers can be important resources here, as they are skilled in analyzing the reports and accounts of a business and working with companies to establish long-term financial goals and put them in the most stable operating positions. With an understanding of the risks your company faces, they can help you divert funds toward preparations and even set up separate savings accounts to use in times of crisis.

Conclusion

It’s difficult to avoid unexpected hardships, but you can prepare for them. When you take the time to understand the most likely risks to your business and seek expert guidance, you have tools to better direct and inform your disaster planning. Don’t forget that the strength of your resources can impact the success of your recovery. It takes some extra focus and effort, but preparation can see your company through difficult periods.