Business
Flood resilient small- and medium-sized enterprises (SMEs)
Businesses across the UK are beginning to address issues posed by severe
weather and climate by taking preventative action. By examining risks such
as flooding, determining their consequences and building responses into
planning, businesses can become more resilient to impacts while also
supporting growth. Many SMEs are already building flood resilience into their
business strategies, which has allowed them to realise opportunities for
growth.
Challenge
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Who to contact in the event of flooding
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Understanding how the business could be affected by flooding
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The cost of flood protection
Response
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Assessment of flood risk
Building flood risk into business continuity planning
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Proactive responses to avoid or lessen the impact of flooding
Key considerations
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Long-term planning can support business continuity
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Support is available to overcome knowledge and resource gaps
Robust business continuity plans to support business growth
The vulnerability of SMEs to climate risks
SMEs are often more vulnerable than larger organisations to changes in markets and external factors.
Improving the resilience of SMEs to flooding is crucial to either help avoid or reduce significant cost and
disruption. This case study shows how the risk of flooding prompted SMEs to improve their resilience to
limit financial and reputational risks. The Environment Agency’s online flood resources, including their flood
map tool and preparation guide, provided resources to help support business planning.
Flood impacts on local businesses in Worcestershire – Climate UK
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UNCLASSIFIED
Case studies
Hotel Shop UK in Droitwich specialises in
booking 2 to 5 star accommodation and short
breaks throughout the UK. During the floods of
July 2007, Hotel Shop’s premises were
flooded. The damage was extensive and
irreplaceable data and stored materials were
lost. Hotel Shop UK had developed a business
resilience plan that allowed them to carry on
their main business activities with limited
disruption following the 2007 flooding event.
This included a longer-term response to find
new premises at a lower risk of flooding.
Environment Agency Flood
Map, Tamworth
Flood impacts on local business in
Worcestershire – Climate UK
Swish Building Products, a PVC manufacturer, is located in
Tamworth near the River Tame. The Tame flooded in 2007
causing significant damage in the surrounding area and affecting
local communities and businesses. Following this event, Swish
Building Products contacted the Environment Agency (EA) for
assistance. They used the EA’s flood map tool and other
resources to better understand the risks to their business and how
to integrate this into their continuity plan. Swish Building Products
developed a detailed flood risk management plan, which covered
manufacturing machinery, impacts on staff, warehouse
operations, utilities, IT systems and communication, post event
clean-up and contact with insurers.
For both Swish Building Products and the Hotel Shop UK, understanding how their businesses could be
affected by flooding was a crucial first step in developing plans for business continuity. Advised by the EA,
they were able to understand which aspects of their operations were likely to be affected by flooding.
Outcomes
Hotel Shop UK had already put their business continuity plan together and was therefore able to transfer
phone lines, borrow IT equipment and move to temporary premises allowing them to re-open within a day.
In the long term, Hotel Shop UK moved premises to a less vulnerable area. They have since changed their
entire business strategy. As a result, their business has significantly grown over the last three years.
Swish Building Products developed a flood risk management plan that included all aspects of the business,
including insurance cover. This SME is now more confident that it can to continue its operations in spite of
extreme weather and flooding.
For both these SMEs, simple measures to build the resilience of their assets will allow them to minimise
disruption and cost to their businesses during future flood events, as important equipment and stock will no
longer be affected.
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