Western UP Health Department

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Close up on a file tab with the text Distaster Recovery Plan, focus on the main text and blur effect. Concept image for illustration of DRP and crisis communication.

According to the Small Business Administration, nearly 25% of
businesses don’t open again after a major disaster. You can help protect your business by identifying the risks relevant to your location and creating a plan to help protect operations, infrastructure, and workers.

In developing a preparedness plan, potential hazards should be identified, vulnerabilities assessed and potential impacts analyzed. The Department of Homeland Security’s Ready Business Risk Assessment Table can assist with identifying threats or hazards and opportunities for hazard prevention, deterrence, and risk mitigation.

Once a risk assessment is completed, and potential loss scenarios identified, business owners should conduct a business impact analysis (BIA). A BIA predicts the consequences of disruption of a business function and process and gathers information needed to develop recovery strategies.

The BIA should identify the operational and financial impacts resulting from the disruption of business functions and processes. Impacts to consider include:

  • Lost or delayed sales and income
  • Increases in expenses such as overtime costs or additional fees to expedite services.
  • Regulatory fines
  • Customer dissatisfaction or defection

Business Impact Analysis Worksheet

FEMA and the Department of Homeland Security provide a wide array of information to assist businesses in planning, preparing, and recovering from emergency situations. Below are additional resources available:

Every Business Should Have a Plan

Hazard Prevention & Deterrence

Risk Mitigation Resources

Ready Business Emergency Response Plan Template

Business Continuity Plan

Business Continuity Resource Worksheet

Resources from Preparedness LLC:

Emergency_Management,_Business_Continuity, & Crisis Management_Program_Self-Assessment Checklist