“In the aftermath of the recent floods it appears that some people were unaware they were located in possible flood affected areas,” says ACE Insurance’s Rai Navakas, Vice President & Asia Pacific Regional Manager, Risk Management Services. “A lack of contingency planning was also evident, or in some cases contingency plans in place focused on disaster scenarios other than flood.
”This meant that effective contingency plans had to consider what would occur if suppliers or customers were affected. The questions that needed answering were: ‘How will production or operations change if they cannot source raw materials? Are there alternative suppliers? How can they move stock to customers if roads or rail services are blocked or destroyed?’
Clients who were prepared and knew they stood the likelihood of flood damage had their plans in place to get to the front of the queue for a range of essential supplies and services. For example, agreements were in place with equipment suppliers and trades services to enable a prompt return to business as usual.
“During the clean-up and restoration effort, it is important not to overlook the need to continue to protect remaining property from the risk of fire and theft,” says Navakas. “For example, fire detection or protection systems may be out of service through isolation or flood damage. Compromised security systems also present a significant risk,particularly with Police focusing on life safety priorities.”
The occupational health and safety issues involved in cleaning up a site are also considerable. If sites are contaminated, power lines down or walkways slippery, there is significant risk. A need for personal protective equipment and alternative temporary sources of drinking water and sanitation may be required. These items may be in short supply if everyone in the affected area requires them. There is a need to plan early and lock-in a source of supply before the event.
Action plan
The floods underline the importance of undertaking due diligence prior to deciding on a location for your operations – these could include:
• Checking with the owner/developerand the local council or state government authority as to the flood zoning of the site.
• Talking to local residents or commercial tenants to establish if flooding has occurred previously.
• Avoiding sites (or designing a building) with critical services in areas that are susceptible to possible water damage.
• Ensuring critical services such as fire pumps, electrical switchboards, HVAC plant and telecommunication equipment at ground or above
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