A Market for Mitigation

Recovery from a disaster was once the pinnacle of business wisdom. The context has now changed, however, from coming back quickly and effectively to never going down at all. With the highly competitive markets, slim profit margin, and tight overhead, losses due to natural and technological hazards can make the critical difference in a business' capacity to maintain profitability or even survive.

Fortunately, there are cost-effective strategies that can reduce or even prevent losses. For example integrating mitigation in new construction may increase costs only between 1 and 5 percent. Rehabilitating or retrofitting an existing facility may cost more than the costs of improvements in new construction. Retrofitting existing facilities, though, may protect the facility from damages that far exceed the cost. (Risk Management, v.44, n.5, May 1997).

The benefits to businesses from mitigation are not limited to a reduction in facility damages. The truly cost-effective benefits include:

Increased life safety for employees and customers,
Reduced down-time in production,
Protected information systems,
Reduced damages to facilities and nonstructural components,
Reduced damages to vital equipment, and
Enhanced insurance coverage or reduced insurance deductibles.

Business owners should also consider the opportunities to partner with the community in recovery. A prepared organization (including employees), that protects itself against possible structural damage, downtime, and loss of records and inventory, can move quickly from "victim" to "survivor". A business that has the capability to then respond with needed goods and services in a time of crisis can then move from "survivor" to "hero".