The Benefits of Pre-Crisis Preparation

Responding well to a crisis is essential to minimizing traumatic effects on a business and its employees. This preparation can go a long way toward a more effective recovery. With the ever-increasing severity of natural disasters worldwide, it is even more crucial to create a recovery plan before disaster strikes, according to a report by http://bclc.uschamber.com. This fact is highlighted by the losses during 2011, the worst year financially for economic losses tied to natural disasters, a whopping $380 billion, more than twice as much as in 2010 and 2009 combined. So, how can the world’s governments better prepare for looming disasters?

The first is by investing in the infrastructure of their respective countries. By rebuilding crumbling urban areas, especially along the coast, governments can save countless dollars after disaster strikes. This should include maintaining that infrastructure once it’s put into place, wise land management, and development of critical areas.

The acquisition of the resources necessary to effectively put a recovery plan in motion is also of chief concern. Small and medium enterprises, which most often supply these resources, can only go so long without getting paid. The corruption that can be involved with officials in disaster recovery leads to the paper money system being a less than favorable solution. Issuing some sort of procurement card beforehand can all but eliminate this problem.

The last area of concern is in the distribution of emergency relief funds. As above, procurement cards of some type are the best viable option to accomplish this. In this way, those needing the most assistance can more easily attain the help they need without all the red tape usually involved. While the government can help in many ways during and after a crisis, bureaucracy can, and often does, get in the way of effectively accomplishing a task when it is needed most.

The bottom line: Being prepared before a disaster happens can assure a quicker and easier recovery. Don’t wait until a disaster happens to start thinking about what to do next.

For more information about effective disaster recovery, visit: http://bclc.uschamber.com/blog/2012-06-01/natural-disaster-financial-management-it%E2%80%99s-all-about-pre-crisis-preparation