single-dr.php

JDR Vol.11 No.3 pp. 535-543
doi: 10.20965/jdr.2016.p0535
(2016)

Paper:

Building Private Sector Resilience: Directions After the 2015 Sendai Framework

Masahiko Haraguchi*, Upmanu Lall*, and Kenji Watanabe**

*Department of Earth and Environmental Engineering, Columbia University
500 West 122

nd Street Room 918, New York, NY 10027, USA

**Graduate School of Social Engineering, Nagoya Institute of Technology
Gokiso, Showa-ku, Nagoya, Aichi 466-8555, Japan

Received:
September 9, 2015
Accepted:
February 19, 2016
Published:
June 1, 2016
Keywords:
Business Continuity Management (BCM), private sector resilience, supply chain resilience, small and medium enterprise, public-private partnership
Abstract

During recent mega-disasters, such as the 2011 Great East Japan Earthquake and the 2011 Thailand floods, interdependencies in supply chains caused substantial economic damage, often exacerbated by vulnerable small and medium enterprises (SMEs). Therefore, a new global framework in disaster risk reduction, the Sendai Framework for Disaster Risk Reduction 2015–2030, mentions the role of the private sector in achieving a resilient society. However, the framework’s statements are abstract and they need to be converted into actionable agendas. This paper identifies future directions for private sector resilience to disasters, focusing on business continuity. Even though business continuity has been regarded as a critical factor in conventional disaster planning, Business Continuity Management (BCM), articulated as a holistic management process, tends to be designed and implemented selectively by each organization. To address SMEs and supply chain resilience, this paper proposes a new type of BCM, a regional BCM based on Public-Private Partnership (PPP), and a new role for the insurance industry.

References
  1. [1] The Economist, “Counting the cost of calamities,” 2012.
  2. [2] UNISDR, “Towards a post-2015 framework for disaster risk reduction,” 2012.
  3. [3] The World Bank, “Thai flood 2011: Rapid assessment for reslient recovery and reconstruction planning,” Washington DC, U.S., 2012.
  4. [4] M. Kunz et al., “Investigation of Superstorm Sandy 2012 in a multi-disciplinary approach,” Natural Hazards and Earth System Sciences, Vol.1, No.2, pp. 625-679, 2013.
  5. [5] UNISDR, “Global assessment report on disaster risk reduction 2015: Making development sustainable: The future of disaster risk management,” 2015.
  6. [6] M. Haraguchi and S. Kim, “Critical infrastructure interdependence in New York City during Hurricane Sandy,” International Journal of Disaster Resilience in the Built Environment, Vol.7, Iss: 2, pp.-, 2016.
  7. [7] M. Haraguchi and U. Lall, “Flood risks and impacts: A case study of Thailand’s floods in 2011 and research questions for supply chain decision making,” International Journal of Disaster Risk Reduction, Vol.14, pp. 256-272, 2015.
  8. [8] UNISDR, “Global assessment report on disaster risk reduction 2013: From shared risk to shared value: The business case for disaster risk reduction,” United Nations, 2013.
  9. [9] The UN General Assembly, “Sendai Framework for Disaster Risk Reduction 2015–2030,” Sendai, Japan, 2015.
  10. [10] A. Annarelli and F. Nonino, “Strategic and operational management of organizational resilience: Current state of research and future directions,” Omega, 2015.
  11. [11] H. Carvalho, V. Cruz-Machado, and J. G. Tavares, “A mapping framework for assessing supply chain resilience,” International Journal of Logistics Systems and Management, Vol.12, No.3, pp. 354-373, 2012.
  12. [12] A. Rose, “Defining and measuring economic resilience to disasters,” An International Journal of Disaster Prevention and Management, Vol.13, No.4, pp. 307-314, 2004.
  13. [13] A. Rose, “Economic resilience to natural and man-made disasters: Multidisciplinary origins and contextual dimensions,” Environmental Hazards, Vol.7, No.4, pp. 383-398, 2007.
  14. [14] Y. Sheffi and J. B. Rice Jr., “A supply chain view of the resilient entreprise,” MIT Sloan Management Review, Vol.47, No.1, 2005.
  15. [15] E. de Oliveira Teixeira and W.B. Werther, “Resilience: Continuous renewal of competitive advantages,” Business Horizons, Vol.56, No.3, pp. 333-342, 2013.
  16. [16] M. Stevenson and M. Spring, “Flexibility from a supply chain perspective: definition and review,” International Journal of Operations & Production Management, Vol.27, No.7, pp. 685-713, 2007.
  17. [17] D. More and A. Subash Babu, “Perspectives, practices and future of supply chain flexibility,” International Journal of Business Excellence, Vol.1, No.3, pp. 302-336, 2008.
  18. [18] Y. Sheffi, “The resilient enterprise: overcoming vulnerability for competitive advantage,” MIT Press Books, Vol.1, 2005.
  19. [19] P. R. Kleindorfer and G. H. Saad, “Managing disruption risks in supply chains,” Production and operations management, Vol.14, No.1, pp. 53-68, 2005.
  20. [20] International Organization for Standardization, “ISO 22301: 2012(E) “Societal security – Business continuity management systems – Requirements”,” International Organization for Standardization, Editor 2012.
  21. [21] K. Venclova, H. Urbancova, and H. V. Vydrova, “Advantages and disadvantages of business continuity management,” in “Proc. of World Academy of Science, Engineering and Technology,” World Academy of Science, Engineering and Technology (WASET), 2013.
  22. [22] B. Merz et al, “Charting unknown waters – On the role of surprise in flood risk assessment and management,” Water Resources Research, Vol.51, No.8, pp. 6399-6416, 2015.
  23. [23] Tokyo Shoko Research, ““Shinsai Kara Yonen” Higashinihon Daishinsai Karen Tosan Fusaisougaku 1cho5,381oku En [“4 Years after the earthquake” Bankruptcies caused by the Great East Japan Earthquake costs indebtedness of 1 Trillion 538.1 billion Japanese Yen],” 2015.
  24. [24] D. Liverman, “US National climate assessment gaps and research needs: overview, the economy and the Int. context,” Climatic Change, pp. 1-14, 2015.
  25. [25] K. Watanabe, “Regional business continuity management through public-private partnerships in Japan,” in “Natural Disaster Management in the Asia-Pacific,” Springer, pp. 159-173, 2015.
  26. [26] D. J. Storey, “Understanding the small business sector,” Cengage Learning EMEA, 1994.
  27. [27] B. Sullivan-Taylor and L. Branicki, “Creating resilient SMEs: why one size might not fit all,” International Journal of Production Research, Vol.49, No.18, pp. 5565-5579, 2011.
  28. [28] NKSJ Risk Management, “Heisei 23 Nendo Chushokigyo Jigyokeizokukeikaku Ni Kansuru Chosa [Study on Business Continuity Planning of Small and Medium Enterprises],” Ministry of Economy Trade and Industry, Editor, Tokyo, 2012.
  29. [29] Mitsubishi UFJ Research and Consulting, “Chusho kigyou no risk management ni kansuru chosa ni kakaru itaku jigyou [a commissioned project on the study that investigates risk management in small and medium enterprises],” Ministry of Economy Trade and Industry, Editor, Tokyo, 2012.
  30. [30] J. P. Sarmiento et al, “Private sector and disaster risk reduction: The Cases of Bogota, Miami, Kingston, San Jose, Santiago, and Vancouver,” International Journal of Disaster Risk Reduction, 2014.
  31. [31] T. Databank, “Higashinihon Daishinsai Karen Tosan, Hansin Daisinsai jino 3.8bai [The number of bankrupcies caused by the Great East Japan Earthquake is 3.8 times more than ones caused by Hanshin Awaji Earthquake],” T. Databank, Editor, Teikoku Databank: Tokyo, 2014.
  32. [32] M. Abe and L. Ye, “Building resilient supply chains against natural disasters: The cases of Japan and Thailand,” Global Business Review, Vol.14, No.4, pp. 567-586, 2013.
  33. [33] A. Perwaiz, “Thailand Floods and Impact on Private Sector, in Disaster Management and Private Sectors,” Springer, pp. 231-245, 2015.
  34. [34] M. Ingirige, K. Joness, and D. Proverbs, “Investigating SME resilience and their adaptive capacities to extreme weather events: A literature review and synthesis,” 2008.
  35. [35] M. Savage, “Business continuity planning,” Work study, Vol.51, No.5, pp. 254-261, 2002.
  36. [36] D. K. Robbins, et al, “An ampirical assessment of the contribution of small business employment to US State economic performance,” Small Business Economics, Vol.15, No.4, pp. 293-302, 2000.
  37. [37] Ministry of Economy Trade and Industry, “Daishinsaigo no nihon keizai wo meguru genjo to kadai [situations and challenges of the Japanese economy after the great earthquake],” Industrial Competitiveness Committee under Industrial Structure Council, Ministry of Economy Trade and Industry, Tokyo, Editor, 2011.
  38. [38] R. C. Runyan, “Small business in the face of crisis: Identifying barriers to recovery from a natural disaster,” Journal of Contingencies and Crisis Management, Vol.14, No.1, pp. 12-26, 2006.
  39. [39] J. Petts, “Environmental responsiveness, individuals and organizational learning: SME experience,” Journal of Environmental Planning and Management, Vol.41, No.6, pp. 711-730, 1998.
  40. [40] K. Yoshida and R. E. Deyle, “Determinants of small business hazard mitigation,” Natural Hazards Review, Vol.6, No.1, pp. 1-12, 2005.
  41. [41] V. Steyer and C. Gilbert, “Exploring the ambiguous consensus on public-private partnerships in collective risk preparation,” Sociology of Health & Illness, Vol.35, No.2, pp. 292-303, 2013.
  42. [42] K. Watanabe, “Developing public–private partnership based business continuity management for increased community resilience,” Journal of Business Continuity & Emergency Planning, Vol.3, No.4, pp. 335-344, 2009.
  43. [43] G. A. Zsidisin, S. A. Melnyk, and G. L. Ragatz, “An institutional theory perspective of business continuity planning for purchasing and supply management,” International Journal of Production Research, Vol.43, No.16, pp. 3401-3420, 2005.
  44. [44] National Research Council, “Building community disaster resilience through private-public collaboration,” National Academies Press, 2011.
  45. [45] H. Baba, “Introductory study on disaster risk assessment and area business continuity planning in industry agglomerated areas in the ASEAN,” IDRiM Journal, Vol.3, No.2, pp. 184-195, 2014.
  46. [46] H. Baba and T. Shimano, “10 The role of the private sector in disaster risk management following catastrophic events,” Disaster Risk Reduction for Economic Growth and Livelihood: Investing in Resilience and Development, 2015.
  47. [47] H. Baba, T. Watanabe, and K. Miyata, “Area Business Continuity Management, a new approach to sustainable local economy (Special Issue on Selected Papers from TIEMS Annual Conf in Niigata),” J. of Disaster Research, Vol.10, No.2, pp. 204-209, 2015.
  48. [48] I. Noy, “Comparing the direct human impact of natural disasters for two cases in 2011: The Christchurch earthquake and the Bangkok flood,” International J. of Disaster Risk Reduction, Vol.13, pp. 61-65, 2015.
  49. [49] R. Mechler, et al, “Assessing financial vulnerability and coping capacity: the IIASA CATSIM model,” Measuring vulnerability and coping capacity to hazards of natural origin. Concepts and methods. United Nations University Press, Tokyo, pp. 380-398, 2006.

*This site is desgined based on HTML5 and CSS3 for modern browsers, e.g. Chrome, Firefox, Safari, Edge, IE9,10,11, Opera.

Last updated on Nov. 20, 2017