Financial activities to address in a disaster

Many things need to happen in the aftermath of a disaster in addition to protecting human life, recovering business functions and relocating to a temporary office

    Requires Free Membership to View

space. Among the most important post-disaster activities to be addressed in your business continuity and disaster recovery plans are financial preparations. These financial arrangements ensure that employees and creditors are paid, as well as define other emergency financial arrangements that ensure there will be minimal financial impact to the organization post-disaster.

We'll examine the financial activities to be addressed in your plans before, during and after an incident. Table 1 below provides a list of these actions.


Business interruption insurance may provide yet another source of emergency funding following a disaster. Check with your insurance carrier(s) to determine what options are available.

We have identified several key financial resources that you'll probably need to pay for emergency supplies and other resources. We also encourage you to provide alternate arrangements to have payroll, accounts payable and other essential financial activities processed with minimal interruption so employees and creditors can be paid. In such situations, regular communications with employees, creditors and other stakeholders will help minimize negative actions from these institutions so you can focus on getting back to business.

About the author:
Paul Kirvan, CISA, FBCI, works as an independent business continuity consultant and auditor and is secretary of the U.S. chapter of the Business Continuity Institute and member of the BCI Global Membership Council. He can be reached at pkirvan@msn.com.

This was first published in May 2013

There are Comments. Add yours.

TIP: Want to include a code block in your comment? Use <pre> or <code> tags around the desired text. Ex: <code>insert code</code>

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
Sort by: OldestNewest

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

Disclaimer: Our Tips Exchange is a forum for you to share technical advice and expertise with your peers and to learn from other enterprise IT professionals. TechTarget provides the infrastructure to facilitate this sharing of information. However, we cannot guarantee the accuracy or validity of the material submitted. You agree that your use of the Ask The Expert services and your reliance on any questions, answers, information or other materials received through this Web site is at your own risk.