Despite acknowledging that a human flu pandemic could damage profitability, few companies have introduced a business continuity plan, let alone budget for a possible outbreak.

30 March 2006

AMSTERDAM  —  Despite acknowledging that a human flu pandemic could damage profitability, few of the companies taking part in a global survey in March say they have introduced a business continuity plan, let alone budget for a possible outbreak.

Research carried out by Mercer Human Resource Consulting shows that 70 percent of the companies surveyed globally believe that a pandemic due to the spread of avian flu could severely damage profitability. However, only 47 percent have a business continuity plan in place and as few as 17 percent have budgeted for pandemic preparedness.

Industry sectors most likely to be affected by a flu pandemic are hospitality, recreation and transportation. 

According to the survey, 80 percent of survey respondents in the hospitality and recreation sectors believe a pandemic would have a negative effect on consumer demand and on revenue, but only 20 percent have established a budget for pandemic preparedness. The survey revealed a similar gap between concern and preparedness in the transportation industry.

Companies in Asia most prepared

Asian companies participating in the survey, particularly in Singapore, are furthest advanced in pandemic preparedness plans. 

"About one in four Asian survey respondents have budgeted for preparedness, compared to 12 percent of the respondents in Europe and 7 percent in the US," said Rosaline Chow Koo, head of Mercer’s Health & Benefits business for Asia Pacific, who suggests that this may be because Asia "is at the epicentre of the avian flu outbreak and Asian companies were directly affected by the 2003 SARS crisis."

Another reason for the gap between concern and specific planning actions to date in Europe and the US according to Mercer, could be because, so far Western Europe has experienced no human fatalities while the US bird and human populations have, so far, escaped avian flu unscathed.

[Copyright Expatica 2006]