57% of Real Estate Companies Lack Business Continuity/Disaster Recovery Plans
At a time when extreme weather events are frequently occurring, leaders within the United States commercial real estate industry are largely unprepared to maintain daily business operations according to a recent IndustryEdge survey conducted by Travelers. The results indicate that 57 percent of real estate owners and managers are operating without a business continuity plan.
About 43 percent of the 200 real estate industry professionals did not consider natural disasters to be an important business issue, said the survey.
“The lack of preparation could be detrimental for real estate managers and owners,” said Deb Denker, real estate industry manager, Travelers commercial accounts. “To survive the increasing number and severity of disasters, real estate owners and managers need a strategic business continuity plan to help minimize downtime, organize a response and deploy the resources needed for a prompt recovery.”
Even a “minor” property loss can impact the ability to maintain a building, while a major event can have a material effect on a company’s operation and financial condition.
“It is easy to see how developing a business continuity plan, testing its effectiveness and carrying proper insurance can be put aside in the rush of everyday operations, but organizations need to look at the long-term vitality of their business and prepare for emergencies and disasters,” said Denker.