Lack of pandemic planning will affect bottom line

The massive impact that a pandemic could have on business operations clearly makes the case for investing in planning, said a study.

‘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,’ says Dr. Amin Mawani, the study’s author and Associate Professor in the Health Industry Management Program at the Schulich School of Business at York University in Toronto.

‘Firms don’t hesitate to buy fire insurance, yet seem reluctant to invest in protecting themselves against an influenza pandemic.’

The cumulative probability of a pandemic over time is predicted to be in the range of 3-10% for 2008, 14-41% by 2012 and 26-65% by 2017.

“With so many other pressing issues, preparing for a pandemic may not currently be high on the list of priorities for businesses.

Dr. Amin Mawani, Associate Professor in the Health Industry Management Program at the Schulich School of Business

Given the probability of a pandemic occurring and the potential adverse impact, the Schulich report demonstrates that corporate pandemic preparedness, makes financial sense when looking at common business metrics such as net present value (NPV), internal rate of return (IRR) and payback.

Added 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.’

‘With so many other pressing issues, preparing for a pandemic may not currently be high on the list of priorities for businesses. However, not doing so could result in devastating consequences for their operations and supply-chains.’