Do Hazard Mitigation and Preparedness Reduce Physical Damage to Businesses in Disasters? Critical Role of Business Disaster Planning

Abstract

This paper provides fresh evidence on the status of business disaster planning, mitigation, and preparedness, and the effectiveness of these activities on loss reduction. Data from a survey of businesses in Galveston County, Texas conducted 7 month after Hurricane Ike struck the area in September 2008 were analyzed. Different from previous studies, the study results showed that disaster planning by businesses significantly promoted the adoption and implementation of hazard mitigation and preparedness actions, and most importantly, disaster planning and the adoption of mitigation and preparedness measures significantly reduced physical damage to businesses.