Sandy Whann is the fourth generation of Leidenheimer men to run which was founded in 1896 in the city of New Orleans by Sandy’s great grandfarther,Groege Leidenheimer of Germany. The bakery produces French bread made famous by traditional local dishes like the muffaletta and po boy sandwiches that originated in the heart of the French Quarter. As a lifetime citizen of New Orleans ,Sandy has experienced many evacuation and has become adept at hurricane planning through the years.
When the hurricane alert was issued on Saturday,August 27.2006.this veteran immediately put this family emergency plan into effect as this wife and two children prepared to leavethe city.Sandy remained near the plant to keep a close eye on his 110-year-old company and keep production working at a minimal capacity. With his family out of the city, Sandy uncharacteristically decided to shut the bakery down, secure its exterior, gas lines and doors and encouraged his employees to prepare their own homes and loved ones for the storm and potential evacuation, Both Sandy and the Leidenheimer management team keep home phone numbers and emergency evacuation contact information for all employees.
After most of this employees had left, only Sandy, his plant manager, and chief engineer, all of whom play key role in the business’s preparedness plan, remained in New Orleans ,Once Sandy and the other had completed their assigned dutes in the emergency shut-down, they left as well.
While driving to meet with his family in Baton Rouge, Sandy was struck by the unusualness of the event. “Things wrer very different this time around” said Sandy. But in the gridlock I still made the most of the little time we had before the storm hit. Having an emergency preparedness plan helps you know what you need to be doing with the limited time you.
What Is Business Risk
Simply stated risk is the “possibility of suffering harm or loss” Business risk, then is the possibility of losses associated with the assets and earning potential of a firm. Here, the term assets includes not only inventory and equipment, but also such factors as the firm’s employees, its customers. And its reputation.
The nature of business risk can be observed from two perspectives market risk and pure risk. Market risk is the uncertainty associated with an investment decision. An entrepreneur loss. Only after identifying the investment opportunity, developing strategies, and committing resources will she or he find out whether the final result is a gain or a loss.
Pure risk describes a situation where only loss or no loss can occur there is no potential gain. Owning property, for instance, creates the possibility of loss due to fire or severe weather the only outcomes are loss or no loss. As a general rule , only pure risk is insurable. That is, insurance is not intended to protect investors from market risks, where the chances of both gain and loss exist.
Basic Types of Pure Risk
The pure risk that any business faces can be put into the following categories property, liability, and personnel. Let’s take a look at these risks, which are related to the physical, legal and human aspects of a business.
Property Risk
In the course of establishing a business, an owner acquires property that will be necessary to provide the goods and services of the company. If this property is damaged or destroyed, the business sustains a loss. In addition, the temporary loss of use of the property can add to the negative financial impact on the business. Several characteristics of business property and the risks associated with it are worthy of attention.
There are two general types of property real property and personal property. Real property consists of land and anything physically attached to land, such as buildings some business owners purchase land and buildings, while others choose to lease necessary real property. It is important to note, however, that some leases make the lease responsible for any damage or loss to the leased premises. Personal property can be defined simply as any property other than real property. Personal property includes machinery, equipment, furniture, fixtures, stock, and vehicles. While the location of real property is fixed, personal property can be moved from place to place. Among the risks to the personal property of the small firm are the security threats to its computers posed by hackers and spyware, for example.