European floods disaster: New requirements for risk management

The catastrophic flooding in parts of western Germany, with flash floods that occurred within a few hours due to extreme rain, is also placing new demands on companies outside designated flood zones in terms of risk prevention. "The damage picture shows that even companies outside larger hazard zones but close to small rivers or even streams can be affected by massive flooding," says Thomas Heintz, an AGCS loss prevention engineer. To be prepared for such natural events in the future, the risk consultant also recommends that companies prepare a flood contingency plan to reduce potential losses. "Current events show how important it is also to think about business continuity planning in advance," Heintz says.

Specifically, the plan should list necessary responsibilities and accountabilities in the event of an emergency, as well as lists of damage restoration contractors and key equipment manufacturers. Contact information for utility contractors should also be included in this plan. There should be clarity on where to move critical supplies, equipment or records to higher ground very quickly in the event of an emergency and where alternative access points might be. Temporary contingency options for manufacturing, either in-house or via contract manufacturing by outside vendors, should also be considered.