Recent commentary has shown that the reputation of a business will be at risk if there is not an effective recall system in place that is regularly updated and tested. The speed with which negative publicity can spread in our social media savvy society, means that investment in recall policies and procedures is essential to ensure that operational, reputational and ultimately financial risks are minimised.
Appropriate contingencies should include:
- having an incident management team, tasked with responding quickly to such incidents. Even in the case of smaller companies, a plan could be made for temporary staff to be brought in if a product recall situation arises. This team should be made familiar with the recall procedures and requirements within the business and their role in the process;
- having in-house lawyers ensure there are contractual arrangements in place that guarantee all companies in the supply chain are made aware of their contractual obligations and who will pick up any costs incurred. This will help prevent future costly disputes;
- ensuring IT systems are accessible, and easy to use, in order to identify the products which need to be recalled; and
- working with a PR agency, if possible with experience in crisis management, to help to minimise the risk of negative publicity to the brand.