New York University

Intercep: International Center for Enterprise Preparedness

The Business Case for Preparedness

Sustaining Revenue

May 23, 2008 11:26 PM

When firms support government and NGO disaster efforts, they serve their own interests as well as the interests of the community by promoting economic resilience.

Source: "Mobilizing Corporate Resources to Disasters: Toward a Program for Action", William Raisch, Matt Statler & Peter Burgi, International Center for Enterprise Preparedness, New York University, 24 January 2007
Link: http://www.nyu.edu/intercep/events/Mobilizing%20Corporate%20Resources%201.25.2007.pdf

Key Points:

The Rewards of Corporate Resiliency: There are clear financial and strategic rewards for enterprises that develop resiliency programs. They include:

• Increased productivity and innovation, often supported by more effective internal communications, streamlined processes, more adaptive workplaces, better workflows and increased employee morale.


• Protected revenue flows as a result of plans to protect key assets - Inventory, property/plant, equipment and intellectual property - as well as sustain core operations.


• Expanded customer base and increased customer retention, as both individual consumers and organizations place an increasing focus on safety, security and preparedness.
• Lower operating expenses as a result of lower insurance and legal costs, less theft, reduced employee turnover and more competition among suppliers.


• Reduced cost of capital as both equity and debt markets (including key rating agencies) increasingly evaluate corporate preparedness and resiliency.


• Stronger reputation, as a result of both the application and communication of resilience.


• Better regulatory compliance and governance both internally and in terms of external review."

"...when a well-prepared business effectively responds to a local disaster, it may minimize employee injury and substantially lessen economic damage to business property as well as community infrastructure. This in turn lessens the response requirements of governments and NGOs. It helps protect jobs, tax revenues, supplier income streams, investor returns and the well-being of its customers. The business aids in overall recovery by not becoming a victim itself. Corporate self-interest ultimately serves the interests of the broader community."