Disasters happen everywhere: The earthquake in Haiti. The floods in Pakistan. The Japanese tsunami. Natural catastrophes can strike any country, at any time.
When a natural disaster strikes, it has a drastic effect on that country’s business and economy. Many markets are temporarily devastated, but opportunities also arise when the nation rebuilds. Whether your company is based abroad, or you’re considering doing business in a nation that’s recovering, there are several considerations every business needs to keep in mind when dealing with a national disaster.
Be Prepared
If you’re running or taking part of business operations abroad, particularly if it involves on-site factory production, or a local storefront or office, it’s important to be knowledgeable of the potential natural risks of that location.
Are there geological or climate-related disasters in that region, and at what magnitude and frequency? Are disaster-related insurance plans common amongst other businesses there? Consider potential mitigation strategies, and write up an in-depth disaster recovery plan that will help you maintain business functions after a natural disaster.
Digital Security
Of all the companies that have lost major data after a disaster, only 6% survived in the long term. This is why it’s crucial to back up your computer data and files. Be sure they exist in more than one place, duplicated and stored in a different country or physical location.
Cloud-based data backup systems are a great option, and some of them can be set up to have your backup data running an hour after a disaster.
Response
When a disaster strikes don’t hesitate to put your disaster recovery plan into action. Your first priority should be establishing communication between employees.
In the case of physical damage, be sure to assess the damages, determine you coverage, and submit your insurance claim settlements in a timely manner.
Craft a PR response that alleviates customer concerns and expresses the company’s regrets in relation to the devastating effects of the disaster.
Post-Disaster Business: The Ups and Downs
Investing in the economy of a country after a natural disaster offers a huge opportunity for growth as well as personal fulfillment, but is also very risky. Recovery after a natural disaster could easily lead to one of two extremes: national economic growth or deterioration.
Directly after the disaster it may be hard to predict the direction of a nation’s recovery. There’s some evidence suggesting that geological disasters result in a slower recovery than climactic disasters, since there is often greater damage to the national infrastructure. Therefore it may be riskier to help rebuild after an earthquake than a hurricane.
Less developed nations such as Haiti also face a slower and more difficult recovery, and often less potential for economic growth. However, amongst technologically advanced nations such as Japan, there is a lot of potential for growth in certain business areas after a disaster like the tsunami.
Conclusion
No one can predict natural disasters, but there is a lot you can do to prepare. Your disaster recovery plan can be a part of a greater business continuity plan (which also deals with power outages, etc.) but it should address any natural disasters that are common in your business location. Back up your data, file insurance claims quickly, and take the time to consider the economic opportunities that are presented by helping a nation rebuild.
Photo courtesy of Zoriah via Flickr