As we all know natural disasters are environmental changes or events that occur every now and then. In life, there are things that we can control and which are not in our control. Natural disasters fall into the second category and all we can do is try to adapt to the situations and find solutions to overcome them after the disasters have occurred. Landslides, floods, tsunamis, droughts, earthquakes, and cyclones are a few of the natural disasters that we all have witnessed.
In a disaster, we will face the danger of death or a physical injury, we might lose our home and belongings as well. Along with that these natural disasters make a huge impact on a country’s economy. This will result affecting to the businesses in numerous ways. So, now we will look into the various ways natural disasters make an impact on a country’s businesses.
Loss of communication
One of the important aspects of a business is communication. It is a must to carry out day-to-day processes and exchange messages from employees to the directors of a business. When a natural disaster occurs, there is a huge probability of it destroying signal towers, power stations, and optical fibre lines as well. This will create a barrier to communication between the directors and the company staff as well as between the employees as well through phone calls, text messages, and social media platforms as well.
Supply of goods
For a success of a company that is totally based on supplying goods and products for customers and retail stores, an efficient and continuous supply chain is really important. When a natural disaster occurs, it interrupts the continuous supply chain very easily because it will damage roads, bridges, and even airports as well. This will result in moving goods and products impossible because the roads will be not in a state to be used and the airports will be closed. Most importantly the impact of the recent floods on freight solutions is a good example.
Damaged vehicles and buildings
Vehicles and buildings are important possessions of a business. They almost represent the business and especially vehicles may even advertise the goods or the services offered as well. In natural disasters like floods, earthquakes, or a fire, there is a huge probability of vehicles and buildings getting totally destroyed. So, these natural disasters will cause great damage and result in loss of revenue and bear repair costs as well.
Loss of clients
As same as natural disasters lead to physical damage to a business it also affects another important asset of a business, clients, too. Businesses start to lose clients because after a severe natural disaster most people start to move out of the affected areas. And some businesses also decide to move out to a different place to start fresh.
Businesses have to almost start from the scratch after facing a natural disaster to get back up and running. So, it is clear and evident that natural disasters have a greater impact on businesses by going through the above mentioned ways.