Interim CEO and CFO at Avadim Holdings Inc., a North Carolina-based life sciences company that successfully navigated the aftermath of Hurricane Helene.
In September 2024, Hurricane Helene carved a destructive path across the Southeastern United States, unleashing historic rainfall, flooding, landslides, powerful winds, and tornadoes, leaving a lasting mark on western North Carolina.
In addition to the devastating loss of life, the storm damaged or destroyed tens of thousands of homes. Millions of North Carolinians lost access to critical services like water and sewer, electricity, telecommunications, and healthcare facilities for weeks. The region also suffered a severe economic blow, with estimated damage reaching up to $59.6 billion.
If not for the swift response of first responders and the timely support of federal disaster assistance, the aftermath could have been far more devastating.
However, the responsibility of guiding communities through such crises does not solely rest on emergency personnel. Business leaders play a critical role in ensuring that their organizations, employees, and community are supported, informed, and resilient in the face of crisis – whether it’s a data breach, labor disruption, or reputational threat. Crises can take many forms, but preparation is key to navigating any challenge with confidence.
Be proactive, not reactive
In today’s unpredictable environment, it’s no longer enough for businesses to react to disasters as they happen. Proactive planning is essential.
One of the most critical steps an organization can take is developing a comprehensive business continuity plan tailored to the organization’s specific risks, operations, and workforce. This plan should clearly outline the steps the business will take to protect employees, sustain critical operations, safeguard products, and communicate effectively with stakeholders.
As part of this planning, businesses should identify backup manufacturing capabilities, suppliers, and other critical resources if primary operations are disrupted. It’s also worthwhile to explore investing in communication technologies like satellite internet to maintain connectivity when primary infrastructure is down. To boost the overall effectiveness of business continuity plans, they should be reviewed and updated annually to reflect any changes in personnel or operations.
Equally important is reviewing your insurance policies and confirming whether you have adequate protection, including flood and business interruption insurance, for your risk profile. These policies can make the difference between a temporary setback and a prolonged business closure.
Prioritize timely action and clear communication
Swift coordinated action in the immediate aftermath of a disaster is essential to long-term recovery and resilience. Recent research investigating nearly 3,000 county-level recoveries from large disasters found two keys to successful recoveries: 1) quickly mobilizing significant, flexible capital and 2) proactively investing in local capacity and expertise to support post-disaster efforts.
Early investments don’t just support faster recovery; they make financial sense. Every dollar spent on disaster mitigation saves an average of $6 in future costs. Adopting and enforcing national building code standards yields even greater returns, with an average of $11 saved per dollar invested.
In times of crisis, strong communication is as important as decisive action. Given the choice, lean towards over-communicating. A calm, steady, and visible presence helps to reassure employees, customers, and stakeholders. Relying solely on remote management can delay critical actions. Local leaders who understand the context and have established relationships with emergency responders can help coordinate a more effective response. Emergency responders’ insights and experience are invaluable, not just during a crisis, but in helping businesses prepare and strengthen their response plans.
Take care of yourself and your team
Natural disasters and crises of any kind are deeply human events.
Beyond business continuity, the true measure of an organization’s resilience is how it cares for its people. Cultivate a workforce and organizational culture where employees look out for one another.
In the event of a disaster, make it a priority to account for every employee and ensure their safety. When possible, provide immediate support such as food, water, shelter, and cleaning supplies to help them stabilize and recover. By putting people first, organizations lay the foundation for long-term resilience and recovery.
At Carl Marks Advisors, we provide a full suite of operational advisory services to companies and their stakeholders in periods of distress and transition. We know the importance of a present management team, which can both develop and execute a plan, positioning a business for continued success.