Super-Storm Sandy & Financial Aftermath

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Linked is a good article regarding New Jersey and the after affects of Super-Storm Sandy.  In New Jersey, the state is losing $5B in taxable real estate due to Super-storm Sandy. Those that lost their homes obviously do not have to pay the real estate taxes on something that is no longer there.   This is approximately $77M in potential revenue.

This translates into a loss of $12M in revenue for Toms River, one of the largest municipalities affected.  For the Manasquan school district, the loss of $79M in property values means an estimated/possible reducible of over $673,000 in tax revenue.

The cascading losses will be hard to overcome for the school systems and local governments that will have to maintain the same land and infrastructure but on a much smaller budget. Such issues are highlighted on a very large scale but are very related to how they would affect businesses. When identifying and managing risk it is important to look at holistically and prepare for the exposures that arise AFTER a loss. It is hard to prepare for on a government level such as Sandy — but Business Continuity and Disaster Recovery planning can be paramount for businesses.



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