The big (or small) one: would your business survive a catastrophe of any size?

• Author: Kinder, Peri
• Position: Disaster Prep

Scientists predict an earthquake with a magnitude of 7.5 or greater will hit the Wasatch Front at some point. To mitigate this likely catastrophic event, buildings are constructed according to seismic standards and city-wide drills are held routinely.

But it might not be an earthquake that will destroy your business. A disaster might strike in the form of something as innocuous as a water filter.

It was a customer making a deposit at a Zions Bank branch on a Saturday afternoon who first noticed the water dripping in the drive-through lanes. A phone call to customer service alerted the company to a potential problem. Immediately, customer service contacted the proper people on a regional and branch level. But in a very short amount of time, a leaky water filter in an upstairs bathroom had caused thousands of dollars in damage.

In the branch location, computers had to be dried out, part of the ceiling was replaced and waterlogged drive-through tubes had to be serviced. Utah Disaster Kleenup was called in and, at the end of the crisis, a broken water filter had cost the company nearly $30,000 in repairs and clean-up.

If not for an alert customer, however, it could have been much worse. Zions Bank routinely implements, updates and practices disaster preparedness and business continuity plans--and that one phone call from a customer started a chain reaction that led to a quick response, saving the branch thousands of dollars in damage. Fortunately, the branch was open for business the Monday following the incident.

"That quick turn time is a testament to the fact of the importance of a continuity plan," says Brian Garrett, Zions Bank vice president and business continuity manager. "We get so focused on that large, disastrous event, but the more day-to-day events are the ones we should be [prepared for]."

Prepare for the Worst

Whether it's a magnitude 7.5 quake or a long-term power outage, companies need to be prepared for every form of disaster. Natural, manmade or technological upheavals could occur at any time, but business owners can take steps to ensure the survival of their company.

"Pre-planning your disaster preparedness can be the difference between being shut down for a few days with little effect on your business operations to losing all your employees, your customer base and your livelihood," says Daniel Hannaher, Small Business Administration regional administrator. "Disaster preparedness starts by developing an emergency plan that fits your company's needs while addressing the full scope of the disaster scenarios."

The first step is setting up a communications arrangement and a continuity of authority that will maintain leadership should the CEO or president be incapacitated.

With the possibility of in-state phone lines and cell phone service being tied up, businesses should set up an out-of-state contact where employees can check in and get information. Current phone lists...