How to prevent wind and flood from interrupting your business

Dr. Louis GritzoVice President, ResearchFM Global

December 10, 2014

1980-2012: 123 U.S. weather-related disasters ($1 billion per event)

2011: $52 billion

By 2050: $1 trillion a year in potential flood damage in major coastal cities

7 steps to help your company be prepared and resilient when strong winds and floods threaten your business.

6 Protect openings

1 Know your risk

2 Know what’s covered

3 Design to minimize risk

4 Keep critical services operable

5 Relocate key equipment and valuables 7

Have a solid plan and implement it

To make the right decisions, you must understand the hazard and your specific vulnerabilities.

If you are exposed, flood depth and wind-speed become critical.

Is your site prone to severe wind events?

Are you in a flood zone?

1-in-100 chance of happening every year

“100-year flood”

• Know your coverage limitations

• Not all policies include flood

• Is the policy aligned with the risk?

• Talk to your insurer• Take a policy workshop

Post-natural disaster, many businesses suffer massive losses and are surprised to learn they have limited or no coverage.

The best thing you can do is avoid the hazard altogether.

Reality: Avoiding areas prone to natural hazards may be impossible.

But you can protect your facility through proper design.

An example of designing to minimize risk is elevating a building’s ground level from a surrounding area that is susceptible to floods.

Electrical Alarm HVAC Water Telecommunication Back-up systems

• Locate utilities above expected flood level

• Elevate equipment to upper floors

• Isolate and/or barricade rooms

You need to know what you can’t afford to lose,then…Take action to protect your assets.

Common pathways for rain to enter a building are through broken windows and failed dock doors

• Remove loose rocks from roof tops

• Replace glass with laminated glass

• Install secured window film on interior

• Protect windows with shutters or plywood

• Use wind-rated doors • Install temporary

bracing prior to storm

Post-incident: “This can never happen again.”

Flood Barriers

nationalfloodbarrier.org

A solid plan reduces impact and speeds recovery.$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

Weak practices Strong practices

Average loss in US dollars

• Understand exposures• Ensure reliable warning

methods• Establish emergency

actions

Form your FERP

• Know what resources will be needed

• Train, test and practice• Develop contingency

plans

Follow your FERP

6 Protect openings

1 Know your risk

2 Know what’s covered

3 Design to minimize risk

4 Keep critical services operable

5 Relocate key equipment and valuables 7

Have a solid plan and implement it

• There always will be natural hazards.• Many organizations are not prepared for disasters.• 7 straightforward steps can make all the difference.

WHEN YOU’RE RESILIENT, YOU’RE IN BUSINESS.