The impact of extreme events on business organizations: innovative approaches to managing risk (original) (raw)
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This research uses a series of surveys followed by mathematical modeling to help discover risk factors, mitigating actions, and the highest return scenarios as a basis for a low-cost business continuity/disaster recovery plan. The surveys use a Delphi study format in order to rank a base list of risks and mitigating actions and to supplement those lists with ones added by the participants. Survey results are analyzed and presented back to the group for a second round of ranking and supplementing the risk/action categories. This paper describes the top ten risks and high value scenario for small business interruptions as determined by a Delphi survey of small businesses affected by Hurricane Sandy. The highest ranked risk is loss of business reputation. The research then uses Cross Impact Analysis and Interpretive Structural Modeling to determine the risk interactions and the highest valued scenario for which to prepare.
Q uick Response Repo Rt Business Recovery Related to High-Frequency natural Hazard events
In December 2007, flooding in southwest Washington caused widespread damage to more than 200 businesses and farms. The Institute for Global and Community Resilience (IGCR) at Western Washington University's Huxley College of the Environment received a Quick Response Grant from the Natural Hazards Center at the University of Colorado to research the effects of this flood on businesses in Centralia and Chehalis, Washington. Working with local Offices of Economic Development, IGCR administered a 28-question survey to document risk perception and preparedness, impacts, and recov- ery strategies. Of the 63 businesses surveyed, 37 were flooded businesses and 26 were unflooded businesses. Analysis of the survey results showed that risk perception and preparedness were low prior to the flood. Preparedness was low among all businesses, but highest among those that had experienced flooding before. Questions about preparedness showed that two- thirds of the respondents who had engaged in ...
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