Private Sector, Role in Mitigation

In the United States, the National Critical Infrastructure Advisory Council states that 85 percent of critical infrastructure nationally is privately owned. This includes water systems, power supply, hospitals, and other businesses. The private sector has two roles to play in the implementation and success of mitigation. Its role is to essentially protect a community and assist it in the implementation of mitigation, as defined as any long-term action to reduce disaster damage and loss of life as a result of a disaster. While one role is capitalistic and the other is supportive of community development and sustainability, they are not exclusive. These roles may change depending on the timing in relation to a disaster event.

Prior to a disaster event, it is essential for the private sector to work with the public sector to promote mitigation, which helps ensure that the community and residents will experience minimal damage and continue to function normally. For example, when a construction company builds a house, it needs to implement mitigation measures as part of its normal business practices. It is more cost-effective to implement mitigation techniques such as hurricane clips and earthquake tiedowns during the construction phase, versus retrofitting a building after the fact. It may not be the least expensive way to build a home, but in the long run, the initial investment pays off. This helps ensure that the residents of the community will be able to return home and minimizes the response time and costs. This has been demonstrated by a study conducted by the Multihazard Mitigation Council, which discovered that for every $1 invested in mitigation, $4 are saved later. However, the private sector needs to be taught the mitigation techniques to help protect the communities in which it is working. For example, grocery store chains can be equipped with generators to ensure continuity during an event. This prevents losses to the store, provides the community with a place to purchase needed supplies, and keeps store workers employed.