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Revised Disaster Protocols Will Require Business Continuity Plan Updates

·8 min read·👀 Watch

Executive Summary

Hawaii's disaster preparedness efforts, shaped by the 2023 Lahaina wildfire, are evolving, prompting businesses to review and update their continuity and recovery plans. Failure to adapt could risk operational disruption during future emergencies.

  • Small Business Operators: Risk of extended downtime and resource strain if plans are outdated.
  • Real Estate Owners: Potential implications for property insurance and emergency access.
  • Tourism Operators: Need to coordinate with updated county and state emergency management.
  • Agriculture & Food Producers: Water and land access contingency planning requires review.
  • Healthcare Providers: Ensure emergency patient care and infrastructure resilience.
  • Action: Review and update business continuity plans within 90 days.

Watch & Prepare

Medium Priority

Entrenched systems and ongoing development in disaster response may require businesses to review and update their own preparedness plans before new regulations or best practices are fully implemented.

Monitor government announcements from the Hawaii Emergency Management Agency (HI-EMA) and county-level emergency management offices for any new directives or recommended best practices related to disaster preparedness and business continuity. Within the next 90 days, conduct a thorough review of your existing business continuity plan, assessing its adequacy based on lessons learned from the 2023 wildfires and potential future scenarios. Consult with insurance providers to ensure coverage aligns with enhanced resilience requirements and identify critical vendors or partners whose own preparedness is sufficient. If your plan identifies significant gaps, prioritize updates to communication protocols, supply chain redundancy, and staff training.

Who's Affected
Small Business OperatorsReal Estate OwnersTourism OperatorsAgriculture & Food ProducersHealthcare Providers
Ripple Effects
  • Enhanced disaster preparedness and compliance → increased operational costs for businesses
  • Increased insurance mandates → potential for higher premiums impacting small business margins
  • Focus on infrastructure resilience → potential diversion of resources from other development projects
Flooded tropical seashore with palm trees and warning signs under clear blue sky.
Photo by Connor Scott McManus

Revised Disaster Protocols Will Require Business Continuity Plan Updates

Following the 2023 Lahaina wildfire, Hawaii is enhancing its disaster preparedness and response frameworks. While progress is being made, the persistence of "entrenched systems" suggests that businesses must proactively review and update their own disaster preparedness and business continuity plans to align with potential new state and county protocols. This evolution in public sector response necessitates a comparable update in private sector resilience strategies to mitigate operational risks.

The Change

Nearly three years after the devastating 2023 Maui wildfires, state leaders indicate that Hawaii is making progress in disaster preparedness and recovery. This includes refining warning systems, improving inter-agency coordination, and reassessing evacuation routes and shelter capacity. The lessons learned are leading to a more integrated approach to disaster management, moving beyond a reactive stance to a more proactive and resilient model. However, the process of fully embedding these changes faces challenges from existing bureaucratic structures. The precise new regulations or directives have not yet been fully codified or released publicly, but the direction of travel is clear: enhanced readiness and a more robust, coordinated response.

Who's Affected

Small Business Operators Small businesses, including restaurants, retail shops, and local service providers, face increased risk of extended operational downtime if their existing business continuity plans do not account for potentially revised emergency response timelines and resource allocation by the state. Outdated plans may lead to delays in accessing critical supplies, communication disruptions, and insufficient staff preparedness, impacting revenue and customer trust.

Real Estate Owners Property owners, developers, and landlords need to assess how new disaster response protocols might affect insurance premiums and requirements. Understanding updated emergency access routes and communication plans is crucial for property management and tenant safety, particularly for properties in at-risk zones. Developers may need to incorporate resilience features or secure updated permits based on revised safety mandates.

Tourism Operators Hotels, tour companies, and vacation rental businesses must ensure their emergency plans are synchronized with updated county and state evacuation and communication strategies. A disconnect could lead to confusion during an event, impacting guest safety, operational continuity, and the destination's reputation. Preparedness for prolonged disruptions is key, necessitating clear communication channels with local emergency management.

Agriculture & Food Producers Farmers, ranchers, and food producers should review their contingency plans concerning water rights, land use, and supply chain resilience. Enhanced disaster response may include revised water management protocols during emergencies or new land access restrictions in certain areas. Ensuring critical infrastructure (irrigation, storage) is resilient and that supply lines can be re-established quickly is paramount.

Healthcare Providers Clinics, private practices, and medical device companies must ensure their emergency preparedness plans align with any updated public health directives and infrastructure resilience standards. This includes maintaining or upgrading backup power, communication systems, and emergency patient transfer protocols to ensure continuity of care during and after a disaster.

Second-Order Effects

Enhanced disaster preparedness, while critical, can lead to increased compliance costs for businesses through new insurance mandates or infrastructure upgrades. This could potentially dampen new business formation and add pressure to existing small operators already navigating thin margins. In turn, reduced business resilience could exacerbate localized unemployment if disruptions are prolonged, impacting consumer spending and demand for services. The focus on infrastructure resilience might also divert resources from other community development projects.

What to Do

As Hawaii refines its disaster response, businesses across all sectors should proactively review and update their current disaster preparedness and business continuity plans. This is not to respond to immediate new mandates, but to anticipate the direction of policy and best practices informed by recent events. The goal is to ensure plans are robust, aligned with potential future government protocols, and capable of mitigating operational risks.

Action Details: Monitor government announcements from the Hawaii Emergency Management Agency (HI-EMA) and county-level emergency management offices for any new directives or recommended best practices related to disaster preparedness and business continuity. Within the next 90 days, conduct a thorough review of your existing business continuity plan, assessing its adequacy based on lessons learned from the 2023 wildfires and potential future scenarios. Consult with insurance providers to ensure coverage aligns with enhanced resilience requirements, and identify critical vendors or partners whose own preparedness is sufficient. If your plan identifies significant gaps, prioritize updates to communication protocols, supply chain redundancy, and staff training.

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