The violent weather we’ve been experiencing with hurricanes, tsunamis, tornadoes, earthquakes, drought, flooding, and volcanoes have exposed risks that we hadn’t previously considered. “Last week, the Chinese government estimated that more than four million people were having trouble finding drinking water, owing to a drought along the Yangtze River. In Columbia more than two million acres of land have been submerged after almost a year of nearly continuous rain.”*
We need to add the higher potential of devastating weather conditions to our list of risks companies will face in doing business. How do we communicate with employees and others if the headquarters is destroyed by a tornado or hurricane? Do we rely on a single vendor for any of our products? What happens if they are impacted? Do we have a product which can create a toxic result to the environment or the nearby population if impacted by severe weather? Are we addressing the probable increases in energy costs by implementing cost saving measures? What if violent weather impacts just one piece of the supply or transportation chain? What are the key pieces of our business that could cause a failure in our ability to deliver our service or product?
* The New Yorker, June 13, 2011