Following the major blackout on the Iberian Peninsula in April 2025, the issue of business resilience is becoming increasingly important, particularly regarding power failures. Volker Reimann, risk engineer at HDI Risk Consulting, an internal division at HDI Global therefore recommends targeted preventive measures to support companies to prepare themselves specifically for such emergencies.
A sudden loss of power used to be considered an exception, but now such scenarios are increasingly becoming a real threat. The large-scale power outage in Spain and Portugal at the end of April paralysed tens of thousands of households, businesses, and infrastructure. These scenes from Southern Europe are raising questions in the rest of Europe and beyond, too: How well are companies prepared for similar scenarios? And what does resilience mean in the event of a complete blackout?
The answers to these questions form part of an entrepreneur’s risk management strategy, alongside fire safety, IT security and insurance coverage. Power outages are a real business risk, not a hypothetical disaster. Technical faults, extreme weather conditions, cyber attacks and network overload could interrupt the energy supply at any time. Consequences can range from production downtime and irreparable equipment damage to immense follow-up costs.
Therefore, it is recommended that systematic blackout prevention measures are implemented across four areas of action. These measures should address aspects that have typically been overlooked in existing emergency response plans.
1. Identify critical processes and close information gaps
The first step in any precautionary measure is risk analysis: Which processes are absolutely dependent on energy supply? Which systems run in the background? These include, for example, control systems, pumps, and servers. And which of these functions are actually necessary for operations or relevant to safety?
Accurately assessing dependencies is particularly crucial in networked processes in order to prevent domino effects. Ensuring a reliable supply of information is equally important. After all, a power outage means not only a lack of energy, but often also a lack of orientation. Companies should therefore clarify where they can obtain information about the situation in an emergency, for example via so-called ‘beacon points’: locally secured hubs with emergency power supply, radio communication or official presence. These enable relevant decisions to be made on the basis of reliable data.
2. Securing infrastructure, but planning with realistic terms
Emergency power generators, uninterruptible power supplies (UPS) and mobile backup power supplies have become standard equipment in many places. But how many companies actually know how long their systems will last, or whether they will be ready for use in an emergency? Maintenance cycles, refuelling, personnel deployment, and safe control of the systems are therefore crucial factors.
The availability of operational resources, such as generators, must be assessed realistically, as supply chains are often disrupted during emergencies. It is equally important to identify which processes must be maintained and which can, or should, be shut down in a controlled manner to avoid serious damage.
3. Prepare the organisation with a focus on people and communication
Technology alone does not provide protection. In times of crisis, the main vulnerability is often the organisation itself. Without clear responsibilities, structured processes and reliable communication channels, uncertainty and a loss of control quickly arise.
An often underestimated factor is the role of employees. In extreme situations, such as a prolonged power outage, employees may leave the company to care for their families. Companies are therefore well advised to include the personal safety of their employees in their crisis preparedness. This includes providing information on personal emergency prevention and implementing employee welfare plans for crisis situations. Companies that make provisions in this regard can count on the commitment of their teams, even in times of crisis.
4. Anticipate Scenarios – from controlled shutdown to restart strategy
As blackouts cannot be predicted or entirely prevented, it is all the more important to be prepared. Business continuity strategies should not only cover supply chain disruptions and IT failures, but also multi-day power outages. A rough emergency plan is not enough, what is needed is a detailed examination of internal processes.
How long can a system be operated safely? When is there a risk of damage due to cooling or control failures? Are there processes – for example in the chemical industry steel manufacturing, but also for maintaining cold chains in the food or pharmaceutical industry – that would be irreversibly damaged without a continuous power supply? And how can a safe operating state be achieved when neither electricity nor data is flowing?
HDI as a Partner in Transformation
As an insurer, HDI Global supports companies not only in the event of a claim, but also proactively in securing complex transformation processes, from energy management to the digitalisation of complex processes. Upon request, teams of experts analyse individual weaknesses, advise on emergency concepts and work with clients to develop tailor-made security strategies. Due to growing interconnectedness and increasing demands on supply security, businesses have no choice but to work with reliable partners to comprehensively secure their critical processes and ensure resilience in the event of an emergency.
Learn more about HDI Global:
https://www.hdi.global/
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