New study demonstrates that lack of pandemic planning will affect the bottom line

The Schulich School of Business has released what it claims is the first study to assess the impact of an influenza pandemic on individual companies. Presented at the World Conference on Disaster Management, the study ‘Making a case for investing in pandemic preparedness’ focuses on how companies can justify investing in pandemic planning using standard business performance metrics. The study highlights that an investment now far outweighs the potential impact that a pandemic could have on individual businesses.

"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 study presents a compelling business case for investing in pandemic preparedness."

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

"The study also suggests that companies cannot afford to miss being prepared for an influenza pandemic, especially when their competitors are getting prepared," adds 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."

Pandemic-prepared suppliers can enjoy a comparative advantage even if a pandemic never occurs, since customers will feel more secure about the reliability of their supplies.

Making a case for investing in pandemic preparedness was funded through a research grant by Roche Canada.

A copy of the full Schulich School of Business study is available at http://www.schulich.yorku.ca/pandemic

•Date: 19th June 2008• Region: NA/World •Type: Article •Topic: Pandemic planning
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