How to “Be a” (BIA) Survivor, Not a Statistic…Part 1

By John W. Hey, CBCP
Chief Operating Officer
Trivalent Group, Inc.

Easily, the most overlooked aspect of operating an organization is taking measures to ensure it will survive a significant disruption or calamitous event. The common response to this is “yes, but really, how often does something big actually happen?” The answer, of course, varies among those that have endured such circumstances and those that have not. It also only takes one time to create what could be THE circumstances that keep your organization from surviving long-term. I like to assure our clients that we take a very practical approach to this topic, and I certainly do not consider myself a “risk-mongerer” at all. So, you’ll not hear a lot of terrorist-tsunami-earthquake-hurricane rhetoric from me, as it pertains to our safe enclave of Michigan.

Allow me to share some compelling statistics:

  • 70% of businesses involved in a major fire fail within 3 years (Chubb).
  • One out of two businesses never return to the marketplace following a major disaster (AXA).
  • Within two years after Hurricane Andrew in Florida (1992), 80% of affected companies that lacked a business continuity plan went out of business (FEMA).

Those are consistent and have years of measurement to support the notion that it is far better to have a Business Continuity and Disaster Recovery Plan that is current, exercised, and, most of all, READY, should a situation arise.

You may be wondering: “Business Continuity? Disaster Recovery? What’s the difference?”   Look for my next blog (and attend my next BIASurvivor Workshop on 7/30 at our headquarters)!  🙂