Report warns local officials as well as businesses need to 'face reality'

Identifies several key areas that need to be addressed 

Aging infrastructure, water supplies and the risk of catastrophic fires

Beyond the sunshine, the palm trees and Hollywood, if there is one certainty in California, it's that a massive earthquake will strike at some point.

But when the Big One hits, a recent report says, the western state is ill-prepared and local officials as well as major businesses need to face that reality to 'prevent the inevitable disaster from becoming a catastrophe.'

Drafted by a group of business and policy leaders, the report identifies several key areas that need to be addressed before a quake as strong as a magnitude 8 happens, notably aging infrastructure, water supplies and the risk of catastrophic fires.