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Know Your Risks | Topics | To Do > Make A Plan

Time is money: How long can you be down before you’re out?
Building codes focus on keeping you safe. They are not intended to protect your business or assure that you can reoccupy your building in days or even months. So knowing your risk means knowing how long your business can be down or can operate from an alternate location.

• Is your inventory perishable, or can your key data be backed up remotely?
• Do you receive service requests daily, or do you work on long-term projects?
• How fluid is your cash flow?

Know your stuff: What’s critical to your operations?

Some businesses would fall apart without a reliable supply chain. For others, expert professional staff is indispensable. Or maybe it's your location or your equipment that drives revenue. Knowing your risk means knowing what you can't afford to lose.

• How much do you rely on your specific building, workspace, or equipment?
• Can your key business assets be duplicated quickly elsewhere?
• Do you rely on drop-in customers or Internet sales?

Lease or own: How much control do you have over your facilities?
If you own your building, you’re in a position to mitigate potential structural and nonstructural losses. If you lease your space like many businesses, however, some of your risk might be out of your control. Knowing your risk means learning about assets you don’t even own; your lease, for example, might dictate whether repairs will be made, and at whose expense.

Multiple facilities: Are they redundant or interdependent?
Maybe your business has three branch locations, each in a different type of structure, but all hooked into a common data network or supply chain. Or maybe you have a retail storefront downtown, keep delivery vans in a garage around the corner, and store inventory in a warehouse by the freeway. Knowing your risk means understanding how your various buildings might be weak links -- or might serve as useful backup facilities.

Business continuity: What’s involved besides your building?
As you think about your earthquake risk, you might find only part of it is related to your building. Is your staff prepared? Are your accounts and records backed up? Business continuity planning involves a wide set of contingencies and procedures.