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«VOLUM E 1 1, N UM B E R 1 I S SN 2 1 6 8 - 0 6 1 2 F L ASH DR I V E I S SN 1 9 4 1 - 9 5 8 9 ON L I N E T h e In s t it ut e f o r Bu s i n e s s an ...»

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Pre-disaster planning is a critical element in the success of long-term economic and community recovery as many businesses will be negatively impacted by a disaster event (and some may never reopen). For example, a 2004 Gallop organization poll commissioned by the National Federal of Independent Businesses (NFIB) found that at least thirty percent of the surveyed small businesses had been closed 24 hours or longer at least once within the last three years while the the U.S. Bureau of Labor Statistics reports that 93% of businesses that suffer a significant data loss are out of business within five years However, many small businesses lack a plan which helps them highlight the natural, health-related, technologic or human-induced threats that can disrupt their supply chains and viability. Business continuity plans constitute a sine qua non tool for disaster resilience because they help businesses to limit the effects from potential hazards and identify critical processes or operations that must remain open after disaster impact. Backing up and storing data off-site is very important but many small businesses fail to back-up important documents (such as legal information, key customer contacts, and financial records) in a remote location.

The BRC will bring together leading business continuity professionals in Hawaii from both the public and private sector to share best practices and participate in continuing education and creating the business continuity professionals of tomorrow. UHWO DPEM program will introduce students and faculty to this rapidly-growing field through regular networking and educational programs. As a recognized business recovery expert resource, UHWO DPEM will act in an advisory capacity to organizations and government institutions throughout Hawaii, helping to provide technical support for systems integration, to create industry disaster recovery standards and promote business resiliency through public-private partnerships.

GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 496 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 These private-public sector partnerships will ensure that communication flows between these two groups to reveal any potential conflicts and/or duplication of effort in the recovery process. The public sector should be informed of the private sector’s priorities for re-investment and redevelopment. Governments must also carefully consider the implications of decisions that could possibly delay the recovery effort.

Trust and collaboration will be strengthened as stakeholders cooperate in the pre-planning phase so that these relationships can be relied on when the disaster strikes.

Operational Practices to Engage the Private Sector in Disaster Recovery

Improved operational practices are herein proposed to help the private sector recover effectively and efficiently after a disaster event. The Business Recovery Team at UHWO has thoroughly reviewed existing business continuity operations, emergency management and mitigation plans that exist with a special focus on the impacts to the business community and the local economy. The proposed Business Recovery Center could help to establish a tiered system of re-entry for relevant individuals into the disaster stricken area.

The Business Recovery Center should partner with the State of Hawaii Emergency Management Agency (HI-EMA) and other State Agencies such the Department of Business, Economic Development and Tourism (DBEDT) to coordinate re-entry pass distribution to all businesses requiring Tier 1 and Tier 2 clearance in the parish. The Business Recovery Center could be responsible for crafting a Hawaii business re-entry plan as it relates to businesses so that the plan prioritizes critical businesses which will restore essential services after a disaster. The Business Recover Center could create an online website for qualifying businesses to apply for re-entry vehicle passes, learn about Hawaii’s evacuation re-entry plans and connected with the Business Recovery Center’s business continuity network (a main point of contact for businesses and clients in the event of an evacuation). The plan should indicate which businesses qualify for each re-entry tier based on the type of specific service(s) they provide in disaster response and recovery).

Following a wide-scale evacuation, managers, owners and employees of local businesses may be restricted from returning to their property/operations depending on the nature of the incident. The longer the delay in granting individuals access safely back into to their community, the more devastating the effects on the businesses and the affected community including decreased employment opportunities for residents and a significant decline in the tax revenue base, thereby extending the recovery time. Specifically, as a result of re-entry delay, perishable inventory may spoil, employees may find alternative work and business closures can disrupt the operation of critical businesses needed to restore infrastructure, provide essential services and goods in the impacted area (i.e. food and water, gas, daycare, health services, sustainable living conditions, etc.) and jumpstart the local economy. As an example, 60% of the businesses within the police perimeter of the 1995 Oklahoma City bombing closed permanently (even those without physical damage) due in part to limited or no access to the area following the event.

To respond to this issue, the Business Recovery Center will work with city and county emergency management personnel to develop a tiered system of re-entry following a disaster. The purpose of this tiered

system is to allow for the expedited, safe, orderly return of re-entry of:

tier 1 agencies/groups involved in emergency response and restoring normal operations following a disaster (search and rescue; emergency healthcare staff; utilities and infrastructure repair personnel; damage assessment teams; and pre-designated government staff and other critical personnel);

tier 2 groups such as relief workers; healthcare agencies and suppliers; insurance agents; business operators such as important food and building material retailers, fuel distributors and stations, debris management, financial institutions (not allowed under tier 1). This would likely include This may include financial institutions, business anchors for key industries, employers with a large GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 497 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 workforce, and/or a major tax revenue source for the community and select businesses with unique circumstances (fragile inventory, hazardous waste, large workforce, global distribution, etc.) remaining tier 3 residents and business operators (not allowed under tier 2) that can prove they live, own, rent, or lease in the restricted area; licensed contractors and other repair service providers;

and possibly family and friends who re-enter with an eligible resident While not guaranteeing re-entry, a credentialing program with ID cards or passes as well as training for local law enforcement to recognize the cards/passes (and allow access when the appropriate ‘tier’ is activated) can facilitate the timely re-entry of critical businesses and emergency personnel to assist in the community’s recovery effort. Working proactively with the business community in advance of a disaster is important for making the re-entry plan relevant to business considerations. There should be clear procedures of securing a re-entry ID cards or passes such as requiring that only business owners, operators, and managers apply for such cards/passes for their employees. Partnering closely with emergency management and local law enforcement personnel to garner support of this plan will help to ensure its adoption by the public sector. Preparing a tiered/phased re-entry system which accommodate business re-entry needs assists community leaders and emergency personnel in administering recovery efforts in a more timely and organized manner; without a re-entry plan, local businesses may suffer further challenges to reopen in a timely manner, thereby hampering the local economic recovery engine.

Staggering business re-entry after a disaster and evacuation when conditions on the ground include damaged infrastructure (roadway, sewer, water and electricity lines) promotes safety and ensures expedited re-entry for the critical businesses. Once safety concerns are addressed, the remaining legitimate business operators should be allowed to quickly return to their community to secure property and re-establish business operations, thereby facilitating recovery and promoting the economic vitality of the local community.


It was shown that a major disaster in the US state of Hawaii could precipitate a drop or stoppage of a majority of business activities in the islands. As the most isolated island in the chain in the world, Hawaii has special needs for business continuity planning and supply chain management: Transportation travel times and import costs to Hawaii are significant (nearly all food, fuel, and building materials are shipped by boat), the island’s critical infrastructure is self-contained, the island’s economy is dependent on a handful of sectors and much commerce and business activity occurs in low-lying areas subject to coastal risks and hazards. Accordingly a business continuity planning architecture is put forth to better understand how disasters impact Hawaii’s businesses, how they recover, and how they might better prepare for unexpected, extreme events under conditions of climate change. In-depth interviews with logistics managers, security professionals, governmental officials and environmental economists were undertaken to investigate how companies in Hawaii perceive climate risks and supply chain disruptions and what they are doing to respond and address them.

The UHWO DPEM program has assembled a disaster recovery team with members from the private sector, trade associations, public sector and non-profit organizations with a primary focus primarily on economic recovery. There is a need to effectively engage and pro-actively recruit the appropriate local businesses representatives from across Hawaii in activities that will protect their business assets and expedite the recovery of the local economy in the event of a disaster. A mix of strategic public and private sector representatives will be invited to participate in the business recovery team. To ensure that economic recovery decision making contains the most experienced professionals the business recovery team will include economic development stakeholders (Economic Development Officers, chambers of commerce officials, business & trade association professionals, special districts), public and elected officials (including emergency management personnel) as well as a significant representation of the business GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 498 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 community. Team members will be selected based on their articulated position of authority (to provide proper support to the team) and knowledge of the needs of the private sector. For example, the Community Economic Development Officer (EDO) will have understanding and knowledge of their community’s long term economic development resources, goals and plans, zoning laws, permitting processes and any laws or ordinances around the financing of various economic development plans.


Alesch, D. J., and Holly, J.N. (2004), Surviving extreme events: A guide to help small businesses and not-for-profit organizations prepare for and recover from extreme events. Washington, D.C.: Public Entity Risk Institute.

Alesch, D. J., Holly, J.N. Mittler, E. and Nagy, R. (2001), When small businesses and not-for-profit organizations collide with natural disasters. Paper presented at the First Annual IIASA-DPRI Meeting on Integrated Disaster Risk Management: Reducing Socio-Economic Vulnerability.

Chang, S. E., and Falit-Baiamonte, A. (2002), Disaster vulnerability of businesses in the 2001 Nisqually Earthquake. Environmental Hazards, 4 (2-3): 59-71.

Dalhamer, J. M., and Tierney, K.J. (1998), Rebounding from disruptive events: Business recovery following the Northridge earthquake. Sociological Spectrum 18: 121-141.

DBEDT Research & Economic Analysis. (2012). 2012 State of Hawaii Databook http://dbedt.hawaii.gov/economic/databook/db2012/ Office of Planning Department of Business, Economic Development & Tourism State of Hawaii (DBEDT) (2014), Natural Disaster Economic Recovery Strategy.

Retrieved from:

http://files.hawaii.gov/dbedt/op/spb/2014_nders_final.pdf FEMA, (2010), “Businesses With Preparedness Plans More Likely To Survive Disasters,” September Flynn, D. T. (2007), The impact of disasters on small business disaster planning: A case study. Disasters 31 (4): 508- 515.

Freitag, R. (2002), The business of earthquakes—What we learned from the Nisqually Earthquake. Paper presented at the CREW Conference.

Furlong, S. R., and Scheberle, D. (1998), Earthquake recovery—Gaps between norms of disaster agencies and expectations of small businesses. American Review of Public Administration 28 (4): 367-389.

Graham, L. T. (2007), Permanently failing organizations? Small business recovery after. Economic Development Quarterly 21 (4): 299-314.

Insurance Institute of Business and Home Safety. (2012), https://www.disastersafety.org/commercial_maintenance/commercial-vulnerability-assessment_ibhs/ Accessed Aug 20, 2015.

Kroll, C. A., Landis, J.D., Shen, Q. and Stryker, S. (1991), Economic impacts of the loma prieta earthquake: A focus on small business. Berkeley, CA: The University of California Transportation Center.

GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 499 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 Miles, S. B., and Chang, S.E. (2006), Modeling community recovery from earthquakes. Earthquake Spectra 22 (2): 439- 458. Northwest River Forecast Center. 2007. December 2007 flood in northwest Oregon and western Washington. http://www.nwrfc.noaa.gov/floods/dec_2007/dec2007flood_part1.htm.

Pierzga, K., and Harris.A.M. (1999), Flood policy on the Chehalis River in Lewis County, Washington:

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