Master Emergency Management: Prepare, Respond and Recover

Disasters, whether natural or man-made, can severely disrupt small business operations. Fires, floods, cyberattacks, power outages and other unexpected events can result in monetary loss, operational paralysis and reputational harm. Small businesses are at an even higher risk. After a disaster, 25% of small businesses don’t reopen but only 26% have a disaster plan.1

Yet, with advanced planning, small companies can quickly respond and emerge stronger after a business crisis.

Effective emergency management enables a quick response to disruptions.

An effective disaster management plan provides a structured framework with which to prepare, respond and recover from emergencies. It is essential to minimize disruptions, reduce risks and losses, protect assets and data, as well as ensure an organized response and swift return to business. The plan should include five key elements — risk assessment, preparedness, response, recovery and review.

1. Risk Assessment
   A thorough risk assessment is the foundation of disaster management and enables small businesses to identify potential threats and mitigate impact before they occur. These threats may include natural disasters like hurricanes, chemical spills or cyberattacks.
   
   A vulnerability analysis examines the business’ location and operational dependencies, including systems, networks and processes most at risk. Probability and impact assessments evaluate the potential for disruption to these critical functions, as well as severity, to prioritize response and recovery efforts. Use the data from the analyses to ensure your business is practicing effective security measures.
   
   
2. Preparedness
   Emergency preparedness entails planning, training and equipping staff to respond effectively to a business crisis. Disaster management planning should include clear protocols for operations, evacuation, communication and resource allocation.
   
   Prior to an incident, write and distribute detailed instructions for how and when to contact employees to ensure safety. Also include actions to protect and/or recover digital assets, as well as physical property.
   • Identify essential business functions and the resources required to maintain them. Designate backup workspaces or enable remote work for employees if needed.
     
     
   • Review and update insurance policies to cover potential risks, including property damage and business interruption.
     
     
   • Maintain secure and regular backups of critical business data, preferably in cloud storage and off-site physical locations.
     
     
   • Confirm alternative access to the internet (e.g., mobile hotspots) in case of network outages.
     
     
   • Establish alternative suppliers or stockpiles for critical inventory and supplies.
     
     
   • Maintain an updated list of contacts that includes employees, emergency services, suppliers, banking and utility providers.
     
     
   • Document evacuation, lockdown or other safety measures. Conduct regular training and emergency drills if you have employees.
     
     
   • Ensure adequate reserves of food, water, first aid kits and essential equipment like fire extinguishers and flashlights.
     
     
3. Response
   During a business crisis, a prompt and coordinated response is vital to minimize loss. Activate emergency management procedures and inform employees, customers and suppliers. If the event is a natural disaster, monitor weather patterns and other hazards to maintain safety and issue timely alerts.
   
   If under a cyberattack, act swiftly to contain the threat and mitigate damage. Disconnect affected systems from the network to prevent further infiltration. Notify your IT team or cybersecurity provider immediately to investigate the breach and identify its scope. Inform employees of the incident and provide instructions to avoid spreading the malware or phishing attempts.
   
   Document the incident, record the time, impact and response efforts to support insurance claims and planning for future reference. Include photographs, videos, and detailed notes. Notify customers if their data is compromised or orders are delayed. Communicate transparently about the steps you are taking to protect their information.
   
   
4. Recovery
   Documenting any damage from an incident is critical. Once the immediate threat passes, determine whether physical, data or other damage occurred. Photographs, videos, and detailed notes will help support insurance claims.
   
   First, look for property damage starting with the building itself. Also inspect business vehicles, equipment, inventory and other physical assets. Determine whether you should temporarily close your business.
   
   Prioritize restoring critical business functions like servers and networks, the internet and communication access. Conduct a thorough review of your data to understand any security impacts. Update software, strengthen passwords and implement multifactor authentication as needed. Consult with the IT team or your security provider to prevent future incidents.
   
   Contact insurance providers to file necessary claims and expedite compensation. Keep detailed notes of each call, including the names of everyone you speak with and copies of any documents you submit. Once you file a claim, an adjuster will come to your location to assess the damage.
   
   Schedule clean up and repairs after meeting with the insurance adjuster. Get quotes from qualified vendors, detailing the costs, their availability to begin work and the timeline. Be sure to review warranties and guarantees vendors offer. Your insurance company may pay for repairs directly, or they may reimburse you if you have the resources on hand to pay from cash reserves.
   
   Disaster assistance may be available from the U.S. Small Business Administration (SBA). For example, the SBA offers low-interest and long-term loans designed to help businesses with disaster recovery. Options include physical recovery loans to help with building repairs and economic recovery loans to assist with cash flow.
   
   
5. Review
   A disaster management plan is a living document that should evolve over time. Regularly review and update the plan to incorporate lessons learned from drills or real disasters. Document changes in business operations, technology or external risks.

This straightforward approach to emergency management ensures small businesses can safeguard assets, employees and customers.

Act now to prepare for and recover from a business crisis.

Disasters can pose significant challenges to small businesses, but preparation before incidents occur helps to mitigate risks and facilitate faster recovery. As a trusted partner, Synovus helps clients across the Southeastern footprint plan for extreme weather and other emergencies. We also partner with the SBA for funding to help maintain business operations during critical times. For more details, call 1-888-SYNOVUS (1-888-796-6887) or stop by one of our local branches.