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Businesses in Cascadia - CREW

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Figure 7. The Cordonnear the Prov<strong>in</strong>cialCouncil Build<strong>in</strong>g <strong>in</strong>Christchurch, NewZealand. Due to theseriousness of thedamage susta<strong>in</strong>ed byChristchurch’s centralbus<strong>in</strong>ess district dur<strong>in</strong>gthe M6.1 earthquake onFebruary 21, 2011, alarge part of the districtwas cordoned off whilethe damaged build<strong>in</strong>gsand debris were clearedaway. (Photo: RossBecker, Photographer,CERA photo gallery)LIMITATIONS ON RESOURCES FOR PLANNING AND MITIGATIONAs they described and compared features of their disaster and cont<strong>in</strong>uity plans, the participantsnoted that <strong>in</strong> general, larger bus<strong>in</strong>esses tend to have engaged <strong>in</strong> more plann<strong>in</strong>g and made morepreparations for disasters than smaller bus<strong>in</strong>esses. Not only do larger bus<strong>in</strong>esses have a greaterability to devote personnel and resources to plann<strong>in</strong>g and mitigation, they are more likely to haveexist<strong>in</strong>g offices and facilities <strong>in</strong> other places—these can serve as backup centers foradm<strong>in</strong>istration, data, communications, and other essential functions if an earthquake causesdamage and disruption to the parts of the bus<strong>in</strong>ess that are located here. This resource does notexist for most small bus<strong>in</strong>esses, and even some of the larger regional bus<strong>in</strong>esses may not havelocated their backup facilities far enough away to escape be<strong>in</strong>g damaged <strong>in</strong> the same earthquakethat damages their ma<strong>in</strong> facility. Creat<strong>in</strong>g and ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g such backup facilities is expensive.In addition to lack<strong>in</strong>g backup facilities outside of the area, smaller bus<strong>in</strong>esses may also strugglewith the costs <strong>in</strong>volved <strong>in</strong> purchas<strong>in</strong>g, stor<strong>in</strong>g, and ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g disaster kits, backup generators,and any other equipment that is necessary for cont<strong>in</strong>u<strong>in</strong>g their operations. Other options that maybe available to very large bus<strong>in</strong>esses, such as the ability to self-<strong>in</strong>sure, retrofit or build facilitiesto a higher standard, and ma<strong>in</strong>ta<strong>in</strong> pre-disaster agreements with contractors for post disaster<strong>in</strong>spections and repairs, may not be feasible for small- to mid-sized bus<strong>in</strong>esses.Solutions for smaller bus<strong>in</strong>esses <strong>in</strong>clude arrang<strong>in</strong>g to share out-of-area backup centers andstorage facilities with other bus<strong>in</strong>esses <strong>in</strong> order to defray the costs. The challenge then is to f<strong>in</strong>dother bus<strong>in</strong>esses with similar needs and a will<strong>in</strong>gness to form these types of partnerships.Community banks have developed a variation on this model: Thanks to partnerships with othersimilar banks, a bank whose build<strong>in</strong>g is damaged <strong>in</strong> an earthquake can cont<strong>in</strong>ue to serve itscustomers with<strong>in</strong> the impacted area by shar<strong>in</strong>g the undamaged facilities of one of its partners.Those with fewer resources to commit to cont<strong>in</strong>uity plann<strong>in</strong>g and mitigation also need helpaccess<strong>in</strong>g current research and identify<strong>in</strong>g their risks and priorities.The Bus<strong>in</strong>ess Roundtable Series | 7

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