Potential risks or disasters could be just around the corner, and regardless of the type of small business you are running, being aware of these possible risks will ensure you are prepared and aid in clearer foresight, which in turn will provide value in the overall running of your small business.

Disasters are divided into two types: natural or man-made. If a business is unprepared, these eventualities can interrupt operations and cause catastrophic effects; it's in your best interests to list all hazards relevant to your businesses. Some events result in cascading issues (such as a storm causing power outage) Note all relevant risks, regardless of whether they are a cause or effect of another hazard. 

Some examples of natural disasters/risks:

• Fire 

• Floods

• Storms

• Virus outbreaks (COVID-19)

  
  

Examples of man-made disasters/risks are:

• Cyberattack 

• Theft/crime

• Vandalism/sabotage/Arson

• Epidemic

• Power outages (Load shedding)

• Pipe bursts/water damage

  
  

Look further for hazards that could disrupt a part or all of your operations. Identify those that are internal and external to your facility. Ask these questions: What is around me? What should I be concerned about that may interrupt my operations, cause losses, affect the reputation or endanger an employee?

Here are examples you may find as potential internal risks:

• Utilities located at your office, home office or utility storeroom. 

• Computer data not backed up.

• Bulky or fragile items on high shelves or bookcases. 

• Unbraced racks located next to any emergency exits.

  
  

Some man-made risks to factor in:

• Is your business located near a high-risk area that may experience a disaster (e.g. near a chemical plant, oil refinery, or highly pollution-heavy industry zone) 

• Located near a water source, such as a river, water main etc.

• Brick elements in your building structure or facade that aren't correctly mounted

  
  

These are the resources that are critical for operations and if eliminated, can cause disruption and potentially catastrophic losses. To simplify the identification of vital resources, they have been condensed into six groups:

1. People 

2. Facilities

3. Operations (essential business functions and processes)

4. Inventory and/or specialist equipment 

5. IT resources

6. Key third parties, vendors and suppliers 

Specifics of these resources will differ from one business to another, but these six critical groups exist in some way or another in all industries. Understanding what your critical resources are will assist you in identifying what your business is vulnerable to.

Now that an understanding has been established as to which natural and man-made disasters are relevant to you let's assess where your business is most vulnerable to disruption. Rate the level of impact that each hazard may have on each of your critical resources and total your scores. The levels of impact are listed in order of importance:

LOW

Impacts are minimal. They are limited to no business disruptions or property damage. Example: Short-term power outage.

MEDIUM

A limited disruption that may affect operations without shutting them down, for example, A small fire in a contained area (kitchen, storage area, etc.). The facility is then evacuated and left with limited to no damage. Operations can then resume quickly without too much disruption.

HIGH

Disruptions of operations or significant damage to the facility. Impacts may be operation-wide. Example: Significant interior flooding occurs, which means the facility cannot be occupied for several days.

CATASTROPHIC

A disaster that affects the entire business operation causes workplace disruptions and forces closure of the facility(s). It can include complete destruction, multiple injuries or deaths, and a regional event which means limited or no outside resources available for some time.