Federal Aid for Business Disaster Recovery Plans

Small business owners should also be versed in the various agencies, both local and federal, that support small business disaster planning. The federal government may also declare an entire area as a disaster area, and order the IRS to enact a tax-free zone. The SBA also has district and regional offices to support disasters around the country, and locating this office should be a part of the pre-planning of the disaster recovery plan.

Local government resources should also be researched, as many have taken to the Internet to provide disaster recovery planning and assistance. Some local governments have taken the steps to highlight disaster recovery and planning on their websites. (Government) Local agencies may be more helpful than federal agencies, due to the fact that local agencies may better understand specific regional issues and policies.

The Department of Homeland Security’s agency, the Federal Emergency Management Agency, or FEMA, provides disaster assistance primarily during a disaster. In the event a disaster is so widespread that it covers an entire region, FEMA will activate its local agencies and provide first responder support, and can help guide business owners to other agencies like the SBA. FEMA’s job is to respond to the disaster and mitigate loss of life and property. The SBA and IRS are to ensure the continuity of business operations. Some businesses are of vital community importance, and the community’s reliance on it makes disaster planning a necessity. Each type of agency support should be thoroughly outlined in the disaster plan, with contact information and type of service provided.

During a disaster, the most important asset to protect is people. Employees are the most critical part of any organization. Business owners should educate themselves and their employees on what to do during a disaster, as well as ensuring that policies are well-defined for things such as payroll and vacation during the event. Employers need employees that are confident of the company’s support during a crisis. The employer should never risk human life for physical property. A disaster recovery plan, well thought out, should enable the business owner to never have to make that kind of decision. Generally, during a disaster, it is standard to direct employees not to travel to work facilities, unless they are specifically directed by the disaster plan. This ensures they are given the opportunity to take care of families, but also to limit the owner’s liability in the event of death or injury.

The owner’s should make efforts to secure the physical location, remove critical/ expensive equipment, and remove backup records from sites before the disaster occurs. The disaster recovery plan, as stated above, should have the necessary emergency services contact information readily available, and the business owner should be the primary contact for the company. Emergency services should only be called during an emergency for actual emergencies, such as fire and other life-threatening events. Events such as electricity failure are not as important during an emergency, unless one the critical functions of the business is threatened. Emergency services will be spending time helping those in dire situations, as well as protecting community infrastructure. A simple comparison of the severity of the problem will show whether emergency services should be dispatched.

After the disaster or threatening event has subsided, the first thing a business owner should do is ascertain if the facility is accessible. If so, then efforts should be made to begin inventorying assets, using the disaster plan. Once a complete inventory is verified, a new inventory should be made of any damaged or missing assets. This will be critical to provide to insurance auditors and inspectors, and time is the key. Processing insurance claims is a long, drawn-out process, and every attempt should be made to provide the insurance company with more than enough information as quickly as possible.

If computer equipment has not been damaged, the systems should be checked against backups. These backups can support restarting operations if non-apparent system errors are discovered. Phone systems should also be checked, as well as mandated and regulated equipment, such as elevators. Employees and customers should not be allowed into the facility until it is deemed safe.

If the damage is minimal, or the disaster recovery plan satisfied the critical functions, business should restart as soon as possible. Every day a business lies dormant is unrealized profits. For many companies, waiting for an insurance claim will not pay the bills, as claims sometimes takes months to adjudicate. Customers and suppliers should be notified expeditiously of the status of operations, to ensure continued loyalty and confidence. A weak statement will result in weak profits.

It is at this time that the disaster recovery lessons learned should be conducted. Details pertaining to what worked, what didn’t, what can be improved upon should all be discussed with employees. The disaster plan can then be updated to ensure it will be ready for the next event. This constant checking is a normal part of disaster recovery, so no one plan can fit any company completely.

If the business owner chooses not to develop a disaster recovery plan on their own, there are paid services that can do this for the company. These range widely in scope and prices, and some more comprehensive than others. Some of these companies specialize in IT disaster recovery, while others focus on physical damage, such as water damage. Smart shopping of services, as well as comparisons hopping should be conducted if the business owner chooses to outsource disaster recovery functions.