Just surviving a disaster or rapidly resuming operations is not always sufficient to guarantee the future of a company. Physical damage is often the easiest problem to deal with following a disaster, but quick repairs alone do not equate to business survival if you cannot produce goods and services, or if there is no one to buy them. Once the immediate crisis is passed, it is essential to have a business recovery strategy.

A prime example of this is the experience of the Sheraton Hotel in New York following the terrorist attacks of 9/11. The hotel had not been damaged in the attack and initially enjoyed several days of sustained bookings from stranded travelers and rooms provided to rescue workers. It soon became apparent, however, that the attacks had dealt a heavy blow to New York’s tourism industry. Room cancellations soared, and the outlook for the future was bleak. The Sheraton needed a new strategy if it was to survive.

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