How companies should respond to pandemic threats – By Cameron Wilson

The H1N1 virus' recent dominance of the global headlines brings challenges to every business in every country in the world. The nature of modern media means there is too much information to be read and a climate of fear persists. Companies need to come up with a response to deal with a pandemic in order to minimize the impact on their business. The threat level may be low to begin with. But do not be lulled into a false sense of security – take the opportunity to plan before it's too late. Recent reports suggest the situation with H1N1 in Mexico to be under control and the virus being contained – but the situation could again flare-up at a later date, particularly as winter returns.

The basic steps for pandemic contingency planning are the same for all organizations. All executives should be given daily update reports on the situation and carry out a risk assessment to map out stakeholders. Even if the risk is minimal at first, a clear statement saying an initial assessment has been carried out and the impact on the business is negligible at the present time is still necessary. The message will provide reassurance to employees or other stakeholders who may be fearful after being bombarded with news about the pandemic everywhere they look. Firms can show care by reminding employees that their insurance benefits cover any eventualities linked to a pandemic. These initial communications are a chance for a firm to establish itself as a trusted source of practical advice and assistance before a situation becomes more serious.

Next, Firms should identify the worst, best and moderate case scenarios regarding the spread of the pandemic, and devise contingency plans for each circumstance. These will vary widely from sector to sector. For example, the worst scenario for a hotel or airline company may be that borders and airports are closed, stranding customers and employees. A good plan should consider the consequences of the spread of the pandemic and should try to mitigate any negative affects on operations or day-today business. For example, a China-based supplier, providing parts to an overseas company, should proactively contact its overseas buyer and assure them they have steps in place to guarantee supply. If they cannot make such a pledge, the supplier may take their business elsewhere and not return after the pandemic passes.

It is essential to be proactive in communications. Facing a pandemic is not the time to sit back and hope things blow over without the need for any action to be taken. As long as communications are sober and keep things in perspective, stakeholders' fears can be allayed.

To conclude, the key steps to minimizing the impact of a pandemic on business are:

1. Actively monitor the situation and assess the risk
2. Map out stakeholders
3. Devise responses for worst, best and moderate case scenarios respectively
4. Communicate developments in a clear and open manner with all stakeholders regularly.