Larger organizations worldwide are more likely to have an avian flu response plan in place, although only about 3.3 percent of those with sales of $5-to-$10 billion have a plan, an underwriters' organization reported today.
Casualty & Property Insurance Underwriters Society provided those and other details in an eJournal article discussing pandemic risk preparation.
Of 553 companies surveyed by the Conference Board, a New York-based research organization, about 35 percent of companies with sales less than $100 million have no plan, compared with 7.1 percent of those with sales of more than $10 billion that have no plan, CPCU said.
The article, "Preparing for the Pandemic Flu from a Risk Management Perspective," examines the key components of planning for a flu pandemic within a risk management approach.
The January issue was written by Francis Achampong, Ph.D., chief academic officer of Penn State University's Mont Alto campus near Gettysburg, Pa.
"Widespread illness and death resulting from a pandemic can have significant and potentially devastating financial consequences for businesses, educational institutions and other organizations as a result of the toll on human resources and resultant disruptions in operations," wrote Mr.. Achampong.
The article is based on the fear that the Avian or bird flu strain known as H5N1 could mutate and spread among humans through the air.
"In the United States alone, it is estimated that from 200,000 to 2 million people could die from the pandemic flu. Depending upon the severity of a pandemic, it is projected that infections could range from 75 million to 90 million people," he said in the issue.
With respect to general preparation for a pandemic, Mr. Achampong wrote that "planning by individuals, families, communities, organizations and governmental authorities is going to be critical."
According to the report, an estimated 40 percent of an organization's workforce could be absent during two weeks at the height of the pandemic wave, resulting in lost productivity.
Various industries have developed plans. In the airline industry, for example, Thai Airways International has taken measures to prevent the spread of infection, such as retrofitting high-efficiency particulate air recirculation (HEPA) filters on its entire fleet of 80 planes.
Alcan Inc., a manufacturer in Canada that produces aluminum and packaging materials, has a plan in place that addresses screening employees, telecommuting, travel to foreign countries and stockpiling medical supplies. It also uses the company Intranet and e-mails to communicate with employees.
When developing a plan, each organization needs to examine its circumstances and the nature of its business, the report said.
Copies of the CPCU eJournal can be downloaded from the society's Web site at www.cpcusociety.org.
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