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.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
