Business continuity and crisis management implications

While many firms have procedures or plans for emergencies that affect business continuity and/or crisis management, they may not adequately cover a situation involving communicable diseases that affect employees and the general population on a wide scale. Even companies that have prepared pandemic plans over the last few years may not have had the opportunity to evolve or test those plans fully.

A pandemic could escalate quickly, last for many months and infect 25 percent or more of the world’s population, according to public health experts. Many organizations believe that at the peak of a severe pandemic, up to 75 percent of the workforce may be absent from work.

To address this risk, companies need to monitor the situation very closely, paying particular attention to government and WHO advice, and examine and possibly amend their existing pandemic, business continuity and crisis management plans accordingly.

Mercer recommends that a company’s management review its risk management controls, human resource and other pandemic policies, crisis management plans and crisis communications capabilities. Companies should update these plans based on the threat of a pandemic. Additionally, there are preventive and preparatory actions that can and should be taken now.

The key points for businesses to consider immediately are:

• Review company travel policies, hygiene and medical screening policies and policies on antivirals and health care support, including providing antibacterial sanitizer, masks and other materials.
• Identify possible social distancing and other means to minimize exposure and spread of illness within the work place.
  Review methods for providing ongoing information about both the pandemic threat and the status of the business to employees at work and at home.
• In population centers, make sure the plans allow for staff to work at home where possible and appropriate.
• Consider if there are any vital processes that must be maintained for the normal or a central location in a pandemic – examples include call centers, health services and services vital to the vulnerable.
• Review the structure that will be necessary to manage the crisis effectively. This includes how to implement multiple business continuity plans, cope with a major increase in the number of employees working from home and substantial changes to the marketplace and the supply chain.
• Ensure crisis management and business continuity management plans include pandemic scenarios and exercise the plans where possible.
   

The main thrust for business continuity planning and management should be to reduce exposure, proactively minimize impact, communicate extensively, minimize peaks of absenteeism, plan for the possible re-occurrence of flu and constantly adjust business activity and the supply chain to reflect shifts in the local and global marketplace. In the event that the WHO raises the threat to Level Six (widespread human infection), companies need to have the following:

• A crisis management plan that includes tailored elements for a pandemic, including policies for business travel, locating staff, social distancing and medical screening, as well as an extensive awareness and communications plan and process
• An alternative workforce or work-at-home policy and plan in the event that a large portion of the workforce is or may be impacted by pandemic
• A strategy for taking special precautions to assess the health of the workforce and potentially turn back infected workers who report for work
• A process for dealing with the emotional impact of such events as death of an individual’s family members and on the workforce in general
• A process for orderly shutdown or reduced service delivery based on reductions of customer demand, labor force, raw material supply or energy resources
• Continuity procedures for core functions that must be kept running
• A structure and process for working collaboratively with third-party suppliers to maintain critical flows of supplies, business services and product
   

Both global and national leaders are available from Mercer’s Risk Consulting Practice to discuss the risks and crisis management/business continuity issues associated with H1N1 virus and general preparedness for pandemics.

 Review "workforce questions" on PandemicFlu.gov