Pandemic planning 'worth the investment'

Presenting at the World Conference on Disaster Management in Toronto Canada, Dr Amin Mawani of the Schulich School of Business claimed the cost incurred now by firms investing in pandemic planning far outweighed the potential impact such an event could have later.

Dr Mawani said that according to world health experts it was not a matter of "if" but "when" the next influenza pandemic would strike.

He told delegates at the conference that the cumulative probability of a pandemic over time was expected to be in the range of 3% to 10% for 2008, 14% to 41% by 2012, and 26% to 65% by 2017.

"The probability that an influenza pandemic can adversely affect a company's employees is greater than the probability that a fire could adversely affect a company's property," said Dr Mawani.

"Firms don't hesitate to buy fire insurance, yet seem reluctant to invest in protecting themselves against an influenza pandemic. The study presents a compelling business case for investing in pandemic preparedness."

He went on to say that given our "inter-connected world" an influenza pandemic could result in corporations experiencing severe absenteeism of 30% to 40%. Prolonged absenteeism and supply chain disruption would have a significant adverse impact on a corporation's revenues and profits.

Competitive advantage!

As a result, the Schulich report said corporate pandemic preparedness - which included preventative measures such as stockpiles of antiviral medicine to protect employees - made "financial sense" when looking at common business metrics.

"The study also suggests that companies cannot afford to miss being prepared for an influenza pandemic, especially when their competitors are getting prepared," added Dr Mawani.

"Competitors who have prepared themselves for a pandemic can have a unique window to steal market share during a pandemic, as well as to make strategic moves that may be harder to reverse later."

He even suggested that pandemic-prepared suppliers would enjoy a competitive advantage even if a pandemic never occurred, as customers would "feel more secure about the reliability of their supplies."

A copy of 'Making a case for investing in pandemic preparedness' (pdf) can be viewed/downloaded on the Schulich School of Business website here