The,H1N1,Effect,the,first,two, business, insurance The H1N1 Effect
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In the first two years after the term "Swine Flu" was used todescribe the illness that mutated and jumped toH1N1 WHO Logo humansfrom pigs, the U.S. Pork Industry suffered losses estimated to be inexcess of $5 billion. This despite the reality that what came to beknown more frequently as H1N1 - partially as a result of the outcriesfrom farmers - cannot be contracted from eating pork. And those lossfigures do not, of course, include either the collateral damage causedto meat retailers and restaurants or comparable figures from otherregions of the world.Global reaction to the threat of BSE - most of us know it as "MadCow Disease" - was far in excess to the actual threat to humans.Have you heard anyone say, during the past year or two, "I'llnever buy anything made in China again" or the more frequent variation"I'll never eat food containing ingredients from China again - or giveit to my pets."Any number of U.S. food recalls, even after governmentannouncements made it clear that the problems impacted or originatedfrom a limited geographic area, prompted much more widespread consumeravoidance until the fear subsided - usually non-coincidental with themedia and blogosphere finding something else to panic about.I'm not a psychologist and hence will not try to explain whypeople react as they have. As a crisis management professional, I needonly to know that they have, and will again, demonstrate what I call"The H1N1 Effect,", which occurs when consumers make fear-basedirrational decisions about a perceived health risk that wreak extensivefinancial damage, threaten organizational and/or brand reputations, andcause severe business interruptions.Knowing this, it is incumbent on crisis managers, particularlythose involved with products which could potentially impact consumerhealth and/or safety, to be prepared when their stakeholders could bethe next victim of "The H1N1 Effect." Some elements of preparednesswould include:* Closely tracking developments related to the health/safetyof your products, using expert resources to help you spot early warningsigns of risk.* "What if..." brainstorming involving internal parties andexternal experts, the goal being to think through the process you wouldhave to follow to respond should a worst-case scenario occur.* Creating educational materials about your products and/orindustry and its health/safety practices that could be widely andrapidly disseminated in response to the demand that would no doubt becreated by an "H1N1 Effect" event.* Ensuring that your organization/industry has a very strongonline presence that can be used in the near-term to build a cushion ofgoodwill and during a crisis for rapid communication.* Creating business continuity and crisis communicationsplans, with the latter including internal and external elements, bothB2B and direct-to-consumer.* Ensuring that appropriate personnel are trained to use those plans, to include media training and simulation exercises.A lesson learned the hard way by some industries is that youshouldn't rely on the U.S. government or even your own tradeorganizations to protect your reputation and bottom line when the stuffhits the fan. For weeks after BSE was finally detected in a U.S.-basedcow, I couldn't find a single restaurant server, or grocery storeemployee, who could tell me with certainty that the beef I bought attheir locations was safe to eat. The government's announcements wereall in consumer-unfriendly jargon, and the industry associations werecompletely unprepared despite the known threat. If they had beenprepared to support their distribution chain with messaging that wouldminimize loss of sales, I would have been given a reassuring handoutright on the scene.The next "H1N1 Effect" is coming. Are you prepared?' Article Tags: H1n1 Effect
The,H1N1,Effect,the,first,two,