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Earthquakes, Risk Management, Disaster Preparedness

A recent news video on earthquakes stated that seismologist experts record over

27,000 earthquakes in the US each year! (most barely detectable but anindication of potential).

This week marks the 104th anniversary of the San Francisco Earthquake in 1906.The largest US relief effort ever was mobilized for that, even more than Katrina.But, it didnt even make the list of the top biggest 15 earthquakes ever recorded.

In 1964, Prince Williams Sound, Alaska had a 9.2 which was the biggest ever inUS recorded history. But, get this! On the top 15 list of the most powerful quakesof all time, ever recorder anywhere, 12 occurred along Alaskas coast!

The biggest earthquake of all time happened in 1960 in Valdivia, Chile: the 9.4

triggered floods and a volcanic eruption.

The U.S Geological Survey estimates a 50 percent or higher chance of anearthquake measuring 7 or greater on the Richter scale hitting San Francisco inthe next 75 years. That seems like a very safe guess to me! That earthquakeis likely to exceed $390 billion in damage.

What about the seismic zone that runs the whole length of California? If The BigOne doesnt hit The City within the next 75 years, whose to say some other areaalong the fault line wont be devastated beforehand? Does it seem, to anybodyelse, that seismic and volcanic activity has increased in the last few years?

What about the likelihood of a life altering natural disaster in your area? Isthat occurrence a real possibility? Would you bet on it? Well, you are

Computer models show that an earthquake similar to the massive quake in 1906would do substantial damage to The Citys four main bridges as well as endangerthe fresh water supply and utility network, including the power grid and telephonelines. Much of the coastal area would sink into the ground or collapse into thebay. What would happen in your area?

STORY LINK: http://247wallst.com/2010/04/19/the-390-billion-san-francisco-

earthquake/

What kind of danger/exposure is your area afflicted with? Hurricanes, tornados,floods, heavy storms, infestations? We have all seen stock offerings where thecompany disclaimer states past performance is no indication of futureperformance. However, with disasters past performance is always an indicator.

Unbelievably, most San Francisco residents are not concerned about their

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exposure to damage and risk. Does your company have locations there? Do yourcustomers have locations there? Do your vendors have locations there? Thedisruption to the U.S. economy, insurance industry, and financial services will bestaggering when the next San Francisco quake hits. It may seriously affect youeven though you may not be there. How can you prepare?

An assessment of your exposure to risk is essential. Not only should you have aplan to confront how it will affect you, your company and your employees butconsider the following: Irreplaceable documents, historical matter, intellectual andcreative property, insurance claim documents etc may be what allows yourcompany to reopen if you are ground zero. Its not an earthquake story but,consider this story about losses

A Sad Insurance StoryMaking Copies and Keeping Them in Other Locations

In 2009 there were two devastating fires in Santa Barbara, California. One tookout the home of a very successful businessman, politician and passionatecollector whose base of operations was his office at home. In the fire he lostbronze sculptures of all sizes (the fire go so hot that a couple of life sizedstatures were melted into a puddle of molten metal!), numerous works of art onpaper and paintings and everything else that goes along with a well furnishedhome. This man was well insured, on paper, with AIG (now Chartis).

The problem was that in the fire, all the files, receipts, photos and records of theart collection went up in smoke. That meant that the owners were unable toreadily produce for their insurance company

y document how much they had paid,

y document and qualify the condition

y prove the level of quality

y document the provenance (history of the artwork)

These four missing details for each work of art meant the owner had nothing togo on for the insurance claim except an inventory sheet with minimal descriptionsthat was filed with the insurance company. And the fight began

After a year, three insurance agents, a couple of lawyers, a couple ofindependent adjusters and a lot of frustration later, the matter is still not settled

and the total amount of the settlement is bound to be significantly less than whatthe owners feel is appropriate or justified.

Devastation is at the heart of any natural disaster. But the idea of total loss byeveryone is an uncommon occurrence. Usually, there is an epicenter ofdevastation but there is also a wide path of people affected around the impactarea that are only marginally affected. So, its always worth being prepared.

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Even in the event of total loss, you can do some very important things to protectyourself and reduce risk. Being better prepared in this particular sad situationcould not have saved the contents. However, copies of photos, receipts,appraisals etc stored in a remote location would have empowered thisbusinessman to get response quickly after the disaster. Redundancy is a term

used in business when multiple copies are kept in different locations for just thisreason.

For coaching on business assessments and answers to preservation questions,Scott M. Haskins is your preservation coach (www.preservationcoach.com) andprovides free content for redistribution through organizations fromwww.saveyourstuff.com. A very interesting blog can be found atwww.saveyourstufffromadisaster.com. You may contact Mr. Haskins forworkshops and for featured speaking engagements at 805 564 3438.

For more information on Mr. Haskins background, go to www.saveyourstuff.com