Hurricane Risk Management

If there is a business located in an area with frequent hurricanes, it is important for that business to plan in advance for this risks (Pekala, 2002). Once the hurricane is identified as a risk for the organization, it is important for the organization to assess what the risks are (Fraser & Simkins, 2010). Hurricanes have a high level of severity however happen very infrequently (Nicoll & Owens, 2013). With enterprise risk management, business identify the severity of the risk and impact on the business. Hurricanes can cause massive damage to any organization. Flooding and wind damage can shut down a business for an indeterminate amount of time. Since weather events have become more predictable and accurate as for as timing, it is easier now

It is important to identify the part of the business that will be critical elements that need to be restored quickly in order to resume business operations (Pinta, 2011). The plan should in qualitative and quantitative information so all potential threats to business operation stoppages are addressed accordingly. Since hurricanes are unpredictable in nature it is important for the planning phase to include all possible scenarios for financial losses. This includes loss of employees from injuries and the workers compensation claims to actual loss of inventory and building damages. The qualitative loss include notification of employee families about the safety of their loved ones and the communication with customers about how long the business will be closed. Communication is a key component of the risk management process. Business can use various communication to channels during a natural disaster. Business need to communicate with employee, vendors and government agencies. There should be a plan in place to evacuate and protect all employees during a

Testing allows to the company to keep recovery spending to a minimum. As business changes over time it important for the crisis to update or change its disaster recovery plan. These types of plan become obsolete over time if they are not refreshed. It is important for business to identify new possible risk loss and to plan for those issues. To this end it is important for business located in areas with frequent natural disaster areas to monitor weather patterns in the area of the business. It will be good for the business to create a strategic alliance with the national weather service and government agencies that assist businesses in the event of a hurricane. Being prepare for a risk goes beyond just responding to the risk when it occurs. Businesses should be proactive in risk prevention. Even though the business cannot stop the hurricane, there are some things the business can do to minimize the losses associated with the hurricane. Protecting inventory, sending employees to a safe location or notification to suppliers and customers can go a long way toward risk