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2019 HURRICANE PREPAREDNESS GUIDE
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AFTER FLO, PREPAREDNESS IS KEY T
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he National Oceanic and Atmospheric Administration reports that the U.S. is struck by an average of three hurricanes over a typical two-year period, one of which is classified as a major hurricane with winds of 111 mph or greater. Hurricane Florence’s top winds hit 150 mph, but weakened to 90 mph when it made landfall at Wrightsville Beach. Just last month, the National Hurricane Center published its final report on the storm detailing rainfall totals of 10-30 inches and storm surge of 5-8 feet above ground level here at the coast. Although not technically a “major” hurricane by wind standards, Flo did her worst in the Cape Fear region, disrupting lives and causing tens of thousands of dollars in damage to homes and businesses. When disasters like Hurricane Florence strike, the sooner a business can get back up to speed the earlier it can begin helping residents - either directly through providing services or by ensuring continuity of income to local employees - while keeping customer retention high and revenue loss low.
MAKE A PLAN Statistics show that between 40-60 percent of small businesses never reopen after a disaster, with a high percentage of them failing if they cannot open within five days. One way to avoid such pitfalls is to plan for disasters in advance, something of special significance with the unique challenges faced by local businesses and governments during and after Flo. “In terms of Florence specifically she was a pretty weird lady; she was coming in strong and pumped the brakes and stayed for a while,” said Kate Oelslager, Communications and Outreach Coordinator for New Hanover County, which is still operating an active Hurricane Florence Recovery Coordination Office some eight months after the storm. “Our business leaders have a lot to balance when it comes to disaster preparation,” Oelslager said, pointing to businesses needing to determine whether or not they provide essential services and then balancing how long to stay open versus protecting the safety of employees and
customers. Other important considerations include protecting facilities and physical assets; maintaining a business brand and reputation by minimizing or avoiding customer service interruptions; and protecting important electronic systems and data.
“A lot of times it kind of slips people’s minds that they need to prepare their business just like they prepare their home.” - Audrey Hart, New Hanover Disaster Coalition
New Hanover County is populating the online resource ReadyNHC.com with information to help businesses develop plans to deal with disasters. A plethora of additional helpful resources are available from ReadyNC.gov and a host of organizations and government agencies like the Small
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According to FEMA, the main tenants of business disaster planning boil-down to: - Managing Resources - Emergency Response - Crisis Communication - Business Continuity - Information Technology - Employee Assistance and Support - Incident Management - Training Business and Technology Development Center, Small Business Administration (SBA) and Federal Emergency Management Administration (FEMA). Having a well-thought-out disaster plan helps a business minimize the amount of lost revenue and extra expenses incurred through disruption of operations. These plans are essential for securing important records like human resources documents, customer contracts and insurance policies; planning for information technology redundancy; and building an emergency kit for
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staff who may be on site during a disaster, and even grab-and-go kits for them to take on their way out to care for family and friends. BUSINESS CONTINUITY IS KEY Government agencies like FEMA and business support organizations stress the importance of every business conducting an impact analysis to identify time-sensitive or critical business functions and processes and the resources that support them, including technology. “Florence made Wilmington area businesses take a deep dive into how their business technologies function
and how vulnerable they may or may not be to disaster,” said Patrick Alsup of Wilmington-based Segra, a local telecommunications company. He explained that depending on business needs, there may be a different prioritization placed on individual technologies. Nevertheless, businesses should have a disaster recovery plan for all business technologies, especially when it comes to customer and internal data. Once a business impact analysis is completed, steps to recover operations, along with the roles and responsibilities of staff to implement
them need to be documented. Training for those staffers - the business continuity team - should be performed, as well as exercises simulating a business disruption to evaluate recovery strategies. Shaun Olsen of technology provider CloudWyze stressed the importance of a business considering technologies failing and working with service providers to answer the “what if” questions. “What if our server fails? What if the internet goes down? What if my computer crashes or I don’t have access to my computer? Asking questions such as these will allow you
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to properly plan and, even if you don’t want to put a solution in place now, you at least understand your risk and can plan accordingly,” he explained. LOOKING AHEAD Unfortunately, the SBA reports that one in five companies do not maintain their plan. For those who don’t, recovery after a hurricane becomes essential; 396 New Hanover County businesses applied for physical damage disaster loans from Flo, and 151 businesses have applied for economic injury disaster loans. As local governments, nonprofits,
organizations and members of the business community continue recovery from Flo, best practices are being developed to help improve communication and coordination. The New Hanover Disaster Coalition, formed out of necessity after Flo in October 2018, is meeting regularly to line-up resources and promote advance preparation. “We are working to increase involvement from local businesses to understand how to prepare a business for a hurricane. How do you make sure the inventory is up out of the way of rising flood waters for example, making sure
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important information is backed-up on the cloud, those types of things,” Audrey Hart, coalition director, said, adding, “A lot of times it kind of slips people’s minds that they need to prepare their business just like they prepare their home.” Hart envisions providing training for local businesses such as lunch and learns, seminars, and other events to further examine preparedness. The group is currently inviting the public to attend its regular meetings on the fourth Tuesday of every month at 2 p.m. at First Baptist Activities Center, 1939 Independence Boulevard.
ONLINE RESOURCES New Hanover County Hurricane Preparedness: ReadyNHC.com NC Emergency Management: ReadyNC.org Preparedness Planning for Your Business: Ready.gov/business SBA Disaster Preparedness: PrepareMyBusiness.org NC Department of Insurance: ncdoi.com
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fter Hurricane Florence, New Hanover County opened its Hurricane Recovery Coordination Office, staffed with six individuals, as part of a county-wide emergency management team working on preparation and planning for all emergencies. This is in addition to the 1,800 New Hanover County employees who have emergency assignments and respond in times of emergency. In February the office consolidated services from Independence Mall to the Northeast Library on Military Cutoff Road, moving in with strategic partners Hope4NC and North Carolina Emergency Management. Throughout the consolidation, specialists and counselors have continued to help residents and business owners navigate the tricky waters of aid provided by FEMA (Federal Emergency Management Agency), while providing crisis counseling and helping people connect with resources for support. Additionally, New Hanover County is unveiling ReadyNHC.com, a new resource for information on preparedness and for emergency news and alerts which cover New Hanover, Pender and Brunswick Counties. The new website will be adding content throughout hurricane season and will provide more helpful materials moving forward.
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New Hanover County is not sitting on its laurels post-Hurricane Florence; officials are hard at work developing resources and sharing best practices for businesses as well as residents to prep for future severe weather events.
Both the strengthening of the Hurricane Florence Recovery Coordination Office and the new website are part of an effort to capitalize on lessons learned from Hurricane Florence - and other severe weather events - to better serve residents and businesses in the Cape Fear region. As Hurricane Florence Recovery
Manager Beth Schrader said, “We want to make accessing state and local resources as easy as possible.” IDENTIFYING THE NEED “Practically every business in our region was impacted by Hurricane Florence,” New Hanover
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Greater Wilmington Business Journal To that end, New Hanover County is embarking on a public awareness campaign of best practices that businesses can employ to prep for hurricanes. These include: 1. Identifying risk(s) What is the business at risk of? Hurricanes? Flood? Fire? Cyber security? 2. Developing a plan The plan should include how to prepare the physical space of the business as well as employees. Some things to think about revolve around business continuity. How will the business continue to operate if employees are evacuated or if the facility cannot be accessed? Do you have backup space or a way to work remotely? Additionally, are you a business that provides essential commodities for residents? If the emergency is community-wide, do you have a role in response and relief? 3. Taking Action Exercise your plan 4. Being recognized and inspiring others
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Legitimize your preparedness plan by encouraging your senior leadership team to sign it, then share a copy of the finished plan with staff. “We generally know a couple days before a storm if we’re going to be impacted; as a business, are you going to close, when do you close; do you provide essential commodities? These are questions we are working to get local businesses to consider,” Oelslager explained. New Hanover County emergency management staff are available to sit down with business owners and talk through options. Members of the local business community are invited and encouraged to contact the county Emergency Management office to assist with the development of disaster preparedness and recovery plans. Additionally, federal partners at Ready.gov/ business have a suite of toolkits and resources to help businesses with emergency preparation. Hours of operation for the Hurricane Florence Recovery Coordination Office are Monday through Friday, 9 a.m. to 5 p.m. For more information, visit ReadyNHC.com
THREAD CAPITAL CLIENT PROFILE Kohl’s Frozen Custard of Wrightsville Beach lost sales and sustained damage due to Hurricane Florence. After the storm passed, owners Matt Smith and Tania Valera turned to Thread Capital for help. Thanks to one of Thread’s disaster recovery loans, Kohl’s was able to make the critical repairs they needed to reopen and get back to business.
Thread Capital is a nonprofit organization that offers loans to help small businesses recoup their losses after a natural disaster and become more resilient. To learn more, visit www.threadcap.org
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side from employee safety, the next major concern of Wilmington-area business owners as Hurricane Florence approached was how would the storm affect operations. For brickand-mortar operations, customers would not be visiting; for online operations, systems might go down, and in some cases, for quite a while. In either case, loss of sales can be devastating for the bottom line not only in the lead-up to a disaster like Flo but in the days (and weeks) after. Customer inquiries, online sales, emails and interest in visits keep coming regardless of the weather, however severe. For the vast majority of businesses, technology is key for keeping longtime customers and not losing potential new ones. How, then, can a business prepare to keep its technology - from phone systems to computers to online stores - rolling despite a catastrophic weather event? HAVE A DISASTER RECOVERY PLAN Patrick Alsup of Wilmington telecommunications company Segra recommends working with a technology provider who knows what it takes to keep your business safe in case of a natural disaster, with resources to ensure your business will be able to be back up and running afterward. For example, Segra’s datacenter engi-
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Whether a business is a brick-and-mortar operation or online, planning how to mitigate and recover from technology disruptions caused by natural disasters can help prevent loss of both revenue and customers.
neers and architects utilize high-availability information technology infrastructure, enterprise-class data centers and disaster recovery best practices to design and implement customized plans for their customers. “Businesses should look to solutions such as disaster recovery as a service, backup as a service, infrastructure as a service and colocation that are housed in a secure data center so that no
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matter what kind of disaster has taken place their business’ operating systems, business data, customer data and network remain safe and secure,” he said. SECURE EQUIPMENT Wind and rain wreak havoc on businesses just as they do on residential structures. If you have important equipment in a brick-and-mortar
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location, perform a detailed walkthrough to see which equipment needs to be secured from wind or moved out of the way of potential flooding or covered to protect from rain coming in from compromised roofs. INVENTORY TECHNOLOGY Businesses of any size need to record computer hardware serial and model numbers for all in-house technology including phone systems, copiers, CPUs, keyboards, monitors, Wi-Fi routers, servers, printers, software installation disks and licensing keys. Additionally, having contact information for technology service providers, customer tech support and hardware leasing/ sales contacts on-hand will ensure resuming daily operations more quickly. PROTECT ONLINE SYSTEMS Unfortunately, even the most mundane business operations can be targeted by unscrupulous hackers in times of crises, capitalizing on a business owner’s rush to get back up to speed with customers. Do not deviate from the basics regardless of circumstance: check to make sure your antivirus software is
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“Infrastructure, hardware and services are one thing, but we often fail to plan around the support.”
Shaun Olsen, Cloudwyze up-to-date, use firewalls on your Internet connection, don’t open emails from people you don’t know, make sure your latest computer patches have been downloaded, and have a plan in place for staff if something goes wrong and computers get infected with malware (or worse). AVOID DISRUPTIONS Telecom, electric and other utilities are some things businesses take for granted. Hurricanes can and do cause extended disruptions in these uilities for extended periods of time; identify which ones are essential to your operations and get with your service providers to discuss emergency options and consider investing in back-up systems, including gener-
ators. Even if roads are ready and deliveries are cleared to resume, will you have power to raise and lower doors at loading docks? Will you be able to track orders and deliveries on your computers systems? Will your point-of-sale equipment be running when customers are ready to return to your storefront? According to Shaun Olsen of Wilmington business technology provider Cloudwyze, “Business continuity planning, separate from disaster recovery planning, is just as important.” Understanding how a business will function as components and infrastructure - such as power and utilities - begin to fail is crucial, Olsen explained. The good news is businesses can test many of these items ahead of time by simulating an office being offline and having staff work remotely, or at least consider if employees are unable to access the office. It is a good idea to test disconnecting a phone system or, if it is hosted voice, how a business will manipulate call flow during an outage. “Infrastructure, hardware and services are one thing, but we often fail to plan around the sup-
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Greater Wilmington Business Journal port. I would recommend asking your provider or, if it is internal, how will you be supported before, during and after?” Olsen said, adding, “What are their policies? Do they meet your expectations? If they aren’t available, do you have backup? Considering the human element is vital.”
“Businesses should look to solutions such as disaster recovery as a service, backup as a service, infrastructure as a service and colocation” Patrick Alsup, Segra The U.S. Department of Homeland Security website ready.gov/business has a wealth of information regarding disaster planning for businesses, including a step-by-step Ready Business Toolkit to build preparedness that covers identifying risks, developing a plan and taking action.
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overnment agencies and organizations like the Carolina Small Business Development Fund, Small Business and Technology Development Center, Federal Emergency Management Administration, New Hanover County Government, and the N.C. Department of Commerce all publish online resources to help businesses with hurricane preparedness. Here is a summary list of important elements of a disaster preparedness toolkit for any business:
BUSINESS CONTINUITY STRATEGY
Decreased sales, lost revenue, extra expenses - these are all results of being unable to conduct business during and immediately following a hurricane. Businesses need to develop a continuity strategy that defines roles, responsibilities, and tasks for members of your continuity team; delegates authority; and codifies how and when to interact with employees, vendors, contractors, local government officials, utilities, facility management, and customers.
RECOVERY PLANNING
Should a major weather event like a hurricane disrupt business operations, businesses will need to act fast to restore normal operations utilizing internal resources or third parties. Areas
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of focus include employees, utilities, technology, inventory, production facilities and vital records.
EMERGENCY RESPONSE PLAN
Many businesses with essential services cut it close when it comes to sending staff home. For those, and any business at risk of having staff in-house during a disaster, it’s essential to
develop an emergency response plan and share it across the enterprise. Elements include identifying team leads to organize on-site staff; formalizing an evacuation plan, including where to assemble after exiting; developing a shelter-inplace plan; and building a crisis communication plan to keep employees, customers, vendors, and other stakeholders updated before, during, and after disasters.
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OFFICE TECHNOLOGY INVENTORY FORM
Mobile devices aside, there are many “hard-wired” components to office technology that need attention prior to disaster striking. Businesses should craft technology inventory forms to record items like serial and model numbers for computer hardware, phone systems, copiers, CPUs, keyboards, monitors, Wi-Fi routers, servers, printers, software installation disks and licensing keys. Having this information on hand post-event can help a business more quickly resume daily operations when contacting the company leasing or selling equipment and/or support services.
SECURE RECORDS
Document management is an overlooked aspect of hurricane preparedness, and is something that can be maddening when being done on the fly. Before disaster is at your doorstep, make copies of important insurance information, customer and vendor lists, human resources documentation, building management/leasing information, insurance policies, fixed asset inventory and contracts. Be sure to
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Businesses need to act fast to revamp operations post-hurricane.
secure multiple copies both on-site and off-site with members of your continuity team.
EMERGENCY KIT
Employee safety is first and foremost in disaster planning. Regardless of the size of a business, leaders need to invest in easy-tofind supplies for staff who may get caught on-site during a disaster such as water, non-perishable food and can opener, battery powered radio and batteries, matches/lighters, flashlights and batteries, first aid kit, whistle to signal for help,
dust or filter masks, blankets, moist towelettes, wrench/pliers to turn off utilities, and garbage bags for personal sanitation. Beyond that, businesses might want to consider putting together basic “grab and go” kits for employees to take home to family and friends on their way out the door.
PREP OFFICE SPACE
In days leading-up to a hurricane, a walk-through of a business’ physical space can identify potential risks and mitigate damage. If a business owns a building, it’s recommended
to inspect and repair drains, gutters, and flashing; strap/anchor any roof-mounted equipment like HVAC units and exhaust vents; check the integrity of any uninterruptible power supply; and secure any loose equipment/outdoor furniture. On the inside, backup all data on servers and personal computers on physical media and online; turn off all non-critical devices like monitors, workstations, and other electrical equipment; cover and/or relocate inventory to avoid damage from wind and water; and secure/remove any physical documentation containing sensitive information.
GET READY TO SALVAGE
In many cases, businesses will be able to salvage equipment and inventory damaged by hurricanes. Tools like fans, plywood and tarps, plastic sheeting, and water vacuums should be secured in advance of disasters to aid in salvage operations. Additionally, business should inventory essential equipment necessary to resume operations and take precautions to avoid exposure to water or high humidity.
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