As we approach the onset of autumn its a good time to consider how your business could be disrupted by severe weather events such as strong winds, heavy rainfall, lightning strikes, snow and ice.

These severe weather events are in my observation becoming more regular with climate change and even businesses that have mitigated this risk before may find that their current risk controls are no longer sufficient.

Earlier this year we experienced a 1 in 200 year snowfall that caused significant disruption to London and other areas as public transport was disrupted and thousands of staff were unable to get to work safely.

We have also experienced major, area wide floods in the UK for the past few years therefore it is reasonable to expect a similar event this winter.

Having recently moved home to an area that is fitted with flood gates to counteract the winter spring tides I am deeply aware of the combination of wind and waves that could end up flooding my home and what measures have been put in place to prevent that.  I am also aware that sea levels are rising however and that other parts of the Island that I live on are not protected – indeed some may be sacrificed to the sea as required by the Environment Agency during the course of the next 50 – 100 years.

So what can you do to protect your business?

Well, you can start by ensuring you understand the types of severe weather events that would cause you an intolerable degree of disruption using a business impact analysis and then establish some form of warning and indicating system to predict when the risk is highest so that you can put contingency plans in place.

As well as countering the actual hazards – flood, snow, ice or wind – you need to consider the effects of that hazard – loss of staff, supply chain disruption, fewer customers on the street, cancelled flights etc and the asymmetric threats (or known unknowns as Donald Rumsfelt might say!).

So the greatest impact from a severe weather event might be reduced cashflow leading to a withdrawal of credit at a later date which prevents you from obtaining a keen wholesale price (since you have to order smaller volumes) which in turn affects profitability, so you can’t afford your rent and end up losing the business!  A rather gloomy view but pretty realistic for a newer business or one that doesn’t have strong cash reserves – we’ve just lost a well-established local cafe (20 years) because the landlord has asked for a higher rent and the business couldn’t or wouldn’t afford it in the current financial climate.  In this case it seems that the landlord had a better offer from a large coffee franchise but the outcome was the same.  Cash is King!

If you’d like to learn more about protecting your business from severe weather or help with controlling risks, call us for a free 30minute consultation.  It just might keep you in business!

@Veterus

08456434775