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Risk Management, Incident Response, Product Recalls
JOHN CARTER
FOOD SURE SUMMIT CONFERENCE, AMSTERDAM, MAY 2019
Page 2
POWERPOINT_MASTER_MCC_HQ.POT
Remember 1999?• 50 litres of Transformer oil (containing PCBs and Dioxin)
• Cost Belgium close to $1billion (and brought down the government)
• Demonstrated the connectedness of the agri-food industry
• Led (partly) to the creation of EFSA
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POWERPOINT_MASTER_MCC_HQ.POT
Remember 2013?• The Horsemeat scandal demonstrated (again) the connectedness of the agri-food industry
• Led to the Elliott Review (UK) and formal inclusion of Food Fraud into the GFSI Guidance Document
JC May 2019FOOD SURE SUMMIT
4
RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS
A PERSONAL PERSPECTIVE
1. Emerging risks: horizon scanning and preparation
2. Risk management: organisational structure, planning and readiness training
3. Real-time incident response and recall decision making
4. Future watching and trends: Crisis management in a world of Big Data and
Social Media
21 May, 2019FOOD SURE SUMMIT
5
JOHN CARTERCAREER SUMMARY
21 May, 2019
6RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS
EMERGING RISKS: HORIZON SCANNING AND PREPARATION
21 May, 2019FOOD SURE SUMMIT
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EMERGING RISKS: HORIZON SCANNING AND PREPARATION
Is this an emerging
risk?
Does it exist here?
How can we mitigate
the risk?
Is the mitigation effective?
Risk Assessment Risk Mitigation
Normal Operations
ScienceMedia
RegulationMonitoring
Are we concerned through our Raw materials / Finished products /
manufacturing process…?What is the impact?
• Data collection or generation• Data results assessment• FS assessment• Portfolio impact assessment• …
• Supplier action plan• Material spec
modification• Recipe reformulation• Process modification• …
• SP results• …
What is the risk? What is at stake?
• Health concern• Regulatory
compliance• Reputation• Urgency (media,
authorities, …)
Budget, resources & tools*+
Decision making processare requested in order to properly assess
and mitigate risks
21 May, 2019FOOD SURE SUMMIT
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– prioritise risks
PEOPLE PRODUCT/BRAND
FINANCE
OPERATIONSREPUTATION ASSETS
HIGH
Risk Impact
LOWRisk Likelihood HIGH
Preventive Risk Assessment
– categorise risks
RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS
21 May, 2019
9RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS
FOOD SURE SUMMIT - RISK MANAGEMENT: ORGANISATIONAL STRUCTURE, PLANNING AND TRAININGT
Management Responses to Risk:
• Tolerate represents the “do nothing” response because the impact is negligible, or is too expensive or too impractical to take proportionate counter measures.
• Transfer involves putting the risk with a 3rd party usually through insurance or contract.
• Treat involves action to reduce the likelihood and/or impact of the risk.
• Terminate requires complete avoidance or removal of the risk. This is often impossible or too expensive to do.
21 May, 2019
10RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS
REAL-TIME INCIDENT RESPONSE AND RECALL DECISION MAKING
• Put People First - the health and safety of all is paramount
• Urgency - treat all potential incidents with appropriate seriousness and speed of response and resources
• Management - direct from highest appropriate level, resolve at lowest appropriate level
• Communication - immediate and positive control of all internal/external communication
• Teamwork - use all available expertise and apply learnings
• Confidentiality - treat all information relating to an incident as confidential
FOOD SURE SUMMIT - RISK MANAGEMENT: ORGANISATIONAL STRUCTURE, PLANNING AND TRAININGT
21 May, 2019
11RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS
REAL-TIME INCIDENT RESPONSE AND RECALL DECISION MAKING: PRIORITIES
FOOD SURE SUMMIT - RISK MANAGEMENT: ORGANISATIONAL STRUCTURE, PLANNING AND TRAININGT
• Put people first - Safeguard the health and safety of consumers,
employees and the general public
• Comply with all relevant regulatory and legal requirements
• Protect the integrity of the Company’s reputation
• Protect the integrity of the Company’s products and brand reputation
• Safeguard the Company’s tangible and intangible assets and property
• Maintain business continuity
21 May, 2019
12REAL-TIME INCIDENT RESPONSE AND RECALL DECISION MAKING
FOOD SURE SUMMIT - RISK MANAGEMENT: ORGANISATIONAL STRUCTURE, PLANNING AND TRAININGT
Walk
ing
the lin
e...
Page
13
All product blocked as a precaution
Incident Management Team posted
Recall initiated
Support materials prepared• External Risk Assessment• Q&As
Confirmatory analysis initiated
Several meetings with authorities, including high level Corporate QA
Bottom line...No consumer illnesses
Due Diligence Test result: Problem
Local own brand (raw milk) cheese product
Real-time incident response and recall decision making: case study
Page
14
Gort’s Gouda Raw Cheese Outbreak
Sickens 21 with E. Coli, One Dead
By News Desk | September 24, 2013
At least 21 people have now fallen ill with E. coli O157:H7 after
eating raw cheese products made by Gort’s Gouda Cheese
Farm in Salmon Arm, B.C.
One elderly victim died in August, while others developed
symptoms between late July and September.
Symptoms of E. coli infection include diarrhea, vomiting, and
stomach cramps lasting five to ten days. Severe infections can
result in the patient developing hemolytic uremic syndrome
(HUS), a life-threatening kidney disease.
Food Safety News
Walk
ing
the lin
e...
Livestock sanitary
status
Milk stage Cheese
processing
Storage and
transport
▪ Main RISK:
Contamination
▪ Sanitary status
and follow up r -
contagious
disease
▪ cleanliness and
sanitary state of
livestock,
breeding
buildings and
environment
▪ Main RISK:
Contamination
▪ Milk machine
maintenance and
cleaning
▪ Milking parlour
cleanliness and
maintenance
▪ Water
microbiological
status
▪ teat cleaning
process
▪ Main RISK :
Growth
▪ Cold chain
▪ Cooling tank
maintenance
and
cleaneliness
▪ …
▪ Main RISK:
Growth and
contamination
▪ Process
parameters
followed :pH..°
Page
15
Authority test Bottom line...No consumer illnesses
Customers contacted
Public Recall conducted
Real-time incident response and recall decision making: a Fishy story
JC May 2019FOOD SURE SUMMIT
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CRISIS MANAGEMENT IN A WORLD OF BIG DATA AND SOCIAL MEDIAIMPACT OF INNOVATION ON QUALITY AND FOOD SAFETY
Industry 4.0 and the Internet of Things
Social Media: real-time consumer
conversations
Whole Genome Sequencing – the
revolution in analytical capability
JC May 2019FOOD SURE SUMMIT
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AFTER TEN YEARS OF SOCIAL MEDIA INTERACTING WITH FOOD SAFETY
Consumers want to
have a voice and
share information –
creating valuable data
News Media
• More sensitised and aware of food
safety than ever
Public Health Agencies
• Faster and more accurate outbreak
identification and response
Industry
• Benchmarking, issue detection and
prevention, and Consumer Care
CRISIS MANAGEMENT IN A WORLD OF BIG DATA AND SOCIAL MEDIA
JC May 2019FOOD SURE SUMMIT
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EXTERNAL CONTEXTFUTURE WATCHING AND TRENDS: CRISIS MANAGEMENT IN A WORLD OF BIG DATA AND SOCIAL MEDIA
JC May 2019FOOD SURE SUMMIT
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RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS
A PERSONAL PERSPECTIVE – SO WHAT’S NEXT?
Organic?
Pla
nt
Bas
ed?
PALM OIL?
Isoflavones?
Plastics?
Biodiversity?
WATER?
Social Media Boycott?
Chlorates?
BREXIT?
Botanicals?
JC May 2019FOOD SURE SUMMIT
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RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS
REMEMBER 1999? REMEMBER 2013?
1. There are similarities – the complexity, the connections, the politics
2. There are differences – the transparency, the speed, the unpredictability
3. We need the same skills to enable swift and wise decision making
4. We need new skills in a world of Big Data and Social Media
5. A paradigm shift in Risk Assessment will require commitment to resources,
collaboration and political will…
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Merci et Au Revoir!