Insights
Is your business ready for a super El Niño winter?
As of early October, forecasters are still talking about what a super El Niño winter will look like. In Ottawa, ski hills and other businesses that rely on snowy, cold winters are nervous. But even if your business doesn’t rely on snow, have you thought about how your business could be impacted by a wild winter?
I want to draw your attention to two events, one recent and one distant, or maybe even before you were born.
New Year’s optimism didn’t last long in 1998. On January 4th, Ottawa was hit by the Great Ice Storm. You can look up the stats: it was devastating and long-lasting, with power out for days for many in the city, and for weeks in some rural areas. But in 1998, landline phones and countertop radios were commonplace, and virtually no one relied on the internet for business.
Fast forward to May of 2022, when the word ‘derecho’ entered our vocabulary. Power was lost, in some areas for extended periods. And for many, so was cellular signal. Now, with few landlines or radios left, we were isolated and helpless.
So, 1998 showed us the raw power of nature, and the 2022 derecho showed us how reliant we’ve become on signal. And have you guessed it? The Great Ice Storm happened during the 1997–98 El Niño, one of the strongest on record.
How would you fare in a great ice storm scenario?
You can’t plan for every eventuality, but here are three questions you can ask to bolster your business resilience:
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What would happen to your business if the power was out for seven days?
Would it shut down entirely, or would you be able to pivot and carry on some portion of it through alternative means? What systems do you have on backup? Would you lose stock that needs cold storage?
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Where would you look for help?
In a major disruption, your usual suppliers, employees, customers and neighbours may all be affected. Who could you rely on for information, equipment, temporary space, supplies or practical assistance? And where might you be able to help someone else?
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Do you really understand your insurance coverage?
Do you know whether you have coverage for business interruption, spoiled inventory, equipment damage, extra expenses following a disruption, or water damage from burst pipes? Have you talked to your broker recently?
Let’s hope all this hype comes to nothing.
But hope is a terrible strategy!
For business continuity tools and advice, check out resources from the Business Development Bank of Canada (BDC).
Want help thinking through your own plan?
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