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Heightened Storm Risk Requires Immediate Review of Business Continuity Plans

·4 min read·👀 Watch

Executive Summary

State and county infrastructure preparations signal an increased likelihood of severe weather events on Oahu, necessitating that businesses review their storm preparedness and potential operational disruptions. Small business operators and tourism providers are particularly vulnerable to immediate impacts.

Watch & Prepare

High PriorityBefore next storm event

Failure to prepare for potential severe weather could lead to property damage, supply chain interruptions, and customer access issues.

Monitor advisories from the National Weather Service Honolulu and the City and County of Honolulu Emergency Services. If a severe weather warning (e.g., flash flood warning, hurricane watch/warning) is issued for your specific area, immediately implement your predetermined business continuity plan, prioritizing staff and asset safety, and communicating any operational changes to customers.

Who's Affected
Small Business OperatorsReal Estate OwnersTourism OperatorsAgriculture & Food Producers
Ripple Effects
  • →Infrastructure clearing and preparedness → Reduced immediate flood risk for some businesses, but still leaves vulnerability to more widespread and severe events.
  • →Heightened storm risk → Potential for supply chain delays and increased local prices for goods due to disruptions.
  • →Severe weather impact → Tourism disruption leading to reduced visitor numbers and revenue loss for hospitality sector.
  • →Precautionary government measures → Signals potential for higher operating costs if businesses need to implement extensive storm protection for properties.
Dark storm clouds gather menacingly over a deserted beach by the ocean.
Photo by Connor Scott McManus

The Change

The Hawaii Department of Transportation (DOT) and the City and County of Honolulu have initiated proactive measures, including clearing streambeds and drainage systems on Oahu's North Shore, and activating the emergency operations center. This heightened state of readiness, including the positioning of high-water vehicles and the preparedness of Hawaii National Guard personnel, suggests an elevated risk assessment for immediate and potentially severe weather, including heavy rainfall and flooding.

While no specific storm event has been definitively forecast for the immediate short-term, these governmental actions indicate a precautionary stance based on current meteorological conditions or short-term forecasts that imply a non-negligible probability of significant weather impacts.

Who's Affected

  • Small Business Operators (small-operator): Businesses, particularly those in low-lying or flood-prone areas, face risks of property damage, power outages, and disruptions to supply chains and customer access. Extended closures due to severe weather can lead to significant revenue loss and increased operating costs for repairs and inventory replacement.

  • Real Estate Owners (real-estate): Property owners, especially those managing commercial or retail spaces, need to ensure their properties are adequately protected against potential water damage. Landlords should review lease agreements regarding responsibilities for storm damage and business interruption.

  • Tourism Operators (tourism-operator): Hotels, tour companies, and vacation rental managers should prepare for potential guest cancellations or disruptions to activities. Damage to infrastructure or transport links can impact visitor access and overall destination appeal, leading to lost bookings and revenue.

  • Agriculture & Food Producers (agriculture): Farmers and food producers are at high risk of crop damage, soil erosion, and loss of stored goods due to heavy rainfall and flooding, impacting yields and supply chain reliability.

Second-Order Effects

Severe weather events and subsequent infrastructure damage can strain already limited transportation and logistics networks. This can lead to:

  • Disrupted Supply Chains: Flooding and road closures can delay the delivery of essential supplies and the pickup of agricultural products, increasing spoilage and operational costs for businesses across sectors.
  • Increased Local Prices: Shortages of goods due to supply chain disruptions can fuel temporary price hikes for essential items, impacting both businesses' cost of goods and consumers' purchasing power.
  • Tourism Impact: Damage to infrastructure or widespread flooding can deter tourists, leading to a reduction in visitor arrivals and impacting the hospitality sector's revenue, which in turn can affect employment in service industries.

What to Do

Given the elevated risk, businesses should treat this as a signal to implement or review existing storm preparedness plans. The "action window" is open until the next significant weather event materializes.

  • Small Business Operators: Review and update your business continuity plan. Ensure critical data is backed up off-site, secure physical assets against water damage, and confirm your insurance policies adequately cover potential storm-related losses. Establish communication protocols for staff regarding potential closures or operational changes.

  • Real Estate Owners: Inspect drainage systems on your properties and clear any blockages. Secure outdoor equipment and inventory. Communicate with tenants about preparedness measures and emergency procedures.

  • Tourism Operators: Review cancellation policies and communicate proactively with guests about potential disruptions. Ensure staff are briefed on emergency procedures and safety protocols. Assess the impact of potential transport disruptions on tour schedules and visitor access.

  • Agriculture & Food Producers: Secure crops and equipment as much as possible. Assess irrigation and drainage systems for capacity. Ensure contingency plans are in place for harvesting and storage if access is temporarily cut off.

Companies should monitor official advisories from the National Weather Service Honolulu and the City and County of Honolulu Emergency Services for specific forecasts and warnings.

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