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Disaster preparedness: In search of a better business model

Disaster preparedness in the United States is built on a paradoxical business model.

By Dr. Irwin Redlener, Jeff Schlegelmilch | Updated on June 24, 2015

Disaster preparedness in the United States is built on a paradoxical business model. The majority of authority and responsibility for disaster mitigation, preparedness, response and recovery resides in government. This is supported through funding that primarily starts at the Federal level, and cascades down to the local level through a relatively few funding streams. However the majority of the U.S. economy and critical infrastructure most at risk from a disaster resides in the private sector. Further, the U.S. economy is optimized for free-market competition. 

In order to be competitive, companies need to be efficient with just-in-time inventory systems and must develop proprietary tools and processes to stay ahead of the competition. This works well for maintaining a world class economy, but in a disaster when excess inventories are needed and a group of competitors must come together as an “Emergency Support Function,” the transition is more traumatic than among government institutions whose long-term survival is not determined by the rules of the market.

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