Business Preparedness for Disaster Is a Necessity
- sjordan95
- Sep 26
- 4 min read
By John C. Scott, President Emeritus, Center for Public Service Communications
In August 1991, the Center for Public Service Communications report Sensitizing the Business Community to Opportunities for Disaster Preparedness[1], commissioned by the International Disaster Advisory Committee of the U.S. Office of U.S. Foreign Disaster Assistance, argued that businesses could no longer afford to treat disasters as someone else’s problem. It warned that a single event—like the projected 7.5 earthquake on California’s Newport-Inglewood Fault—could inflict not only $69 billion in property losses but also ripple effects on productivity, tax revenue, and even national GDP. The report was among the first to frame preparedness as a business imperative, a vision of Oliver Davidson, IDAC Executive Director.
Thirty-four years later, in 2025, an update to the “Sensitizing the Business Community to Opportunities for Disaster Preparedness”[2] revisits that case. Its conclusion is striking: the arguments of 1991 still resonate, but today’s risks—climate disruption, cyber vulnerabilities, and pandemics—make the call to action even more urgent
The World as It Was in 1991
The original report opened with a portrait of Tokyo—home to 30 million people, one-quarter of Japan’s population, and the headquarters of two-thirds of the country’s largest companies. “Vacuum-packed” into a seismic hotspot, the hypothetical Tokyo earthquake scenario illustrated how a single disaster could paralyze global trade, finance, and industry
It wasn’t just Tokyo. Managua’s 1972 earthquake, which caused damage equal to Nicaragua’s annual GNP, underscored how disasters can cripple entire economies. In response, the report urged a “shift in focus” from post-disaster relief to pre-disaster planning, emphasizing prevention, mitigation, and preparedness.
At the time, the biggest obstacles were the newness of the initiative, lack of information, poor cooperation among sectors, and limited access to emerging technologies like early satellite warnings and GIS systems. The suggested fix was simple but revolutionary: involve businesses not only as beneficiaries but as partners in community resilience.
The World as It Is in 2025
The 2025 update opens by noting that the central message of 1991—preparedness is good business—still stands. But the landscape has changed.
Disasters are bigger and broader. The COVID-19 pandemic alone cost $13.8 trillion[3] and exposed the fragility of just-in-time supply chains. The Great East Japan Earthquake in 2011 disrupted global electronics and automotive supply chains, echoing the Tokyo scenario envisioned in 1991. Pakistan’s 2022 floods displaced 33 million people, much as Managua’s earthquake once crippled Nicaragua.
The obstacles have evolved. What was once “newness” is now a perception gap—businesses still underestimate risks until after disaster strikes. Where information was scarce in 1991, it is now abundant but fragmented, leading to data silos and misinformation. Cooperation is still fragmented, while advanced tools like AI exist but remain unevenly distributed, echoing the 1991 concerns about access to technology. And overarching all is a challenge absent in 1991: climate uncertainty.
The motivators have multiplied. In 1991, continuity, liability, and insurance drove business preparedness. In 2025, investor expectations, environmental, social and governmental (ESG) requirements, regulatory mandates, and consumer trust all press businesses to engage in resilience.
A Consistent Call: Business as a Community Partner
Both reports emphasize that preparedness is not just about protecting the firm but also about safeguarding employees, communities, and economies. In 1991, businesses were encouraged to share their emergency planning expertise, technology, and financial resources with their host communities. In 2025, this idea is institutionalized in global initiatives like ARISE[4] (the UNDRR’s private sector alliance) and the Insurance Development Forum[5]. Small and medium-sized enterprises (SMEs)—barely mentioned in 1991—are now central. They are highly vulnerable but also essential to recovery, requiring targeted support through toolkits, incentives, and training.
Then and Now: Obstacles in Parallel
The Road Ahead
The documents close with short-term recommendations. In 1991, these included showcasing “enlightened business leaders,” developing vulnerability analyses, and optimizing NGO partnerships
In 2025, the same logic applies—only now the tools include AI-driven models, ESG-linked incentives, and digital platforms instead of just radio and television.
The thread running from 1991 to 2025 is clear: preparedness pays. Businesses that invest in resilience not only survive disasters but often gain competitive advantage, while those that don’t remain liabilities to their communities.
Conclusion
In 1991, preparedness was a novel idea. In 2025, it is a necessity. The original report argued that disasters “do not discriminate,” and both documents show how true that remains. Whether in Managua, Tokyo, New Orleans, Fukushima, or Karachi, the lesson is the same: disasters may strike anywhere, but preparedness determines whether businesses, communities, and economies collapse—or continue.
The call from 1991 still echoes today: let us not wait for catastrophe to prove the value of preparedness.
[1] “Sensitizing The Business Community to Opportunities for Disaster Preparedness” (unpublished), by John C. Scott, Center for Public Service Communications, prepared for the International Disaster Advisory Committee, Office of U.S. Foreign Disaster Assistance, August 1991
[2] “Sensitizing The Business Community to Opportunities for Disaster Preparedness” 2025 update (unpublished)
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